US supermarket chain Kroger to pay up to $1.4bn in opioid lawsuits

Kroger says it will pay as much as $1.4bn to resolve thousands of lawsuits by US states, local governments and Native American tribes claiming the supermarket chain’s pharmacies helped fuel the US’s opioid epidemic.

Kroger agreed to pay up to $1.2bn to US states, counties and municipalities and $36m to Native American tribes to resolve the majority of opioid cases it faced. It will also pay $177m to cover attorneys’ fees and expenses.

Kroger took a $1.4bn charge related to the tentative settlement, which is dependent on participation by 33 eligible states and the District of Columbia. The $1.2bn would be paid out over 11 years.

The Ohio-based supermarket chain, which is merging with smaller rival Albertsons, will not admit wrongdoing as part of the deal, and said it will defend against any other claims the tentative settlement does not resolve.

Thousands of lawsuits have been filed by states, local governments and Native American tribes accusing drug companies of downplaying the risks of opioid painkillers, and distributors and pharmacies of ignoring red flags that they were being trafficked illegally.

The litigation has resulted in more than $51bn in settlements, according to lawyers for the plaintiffs, with deals already struck with major drugmakers and the nation’s largest distributors.

Kroger itself faced more than 2,000 such lawsuits. In May, it agreed to pay $62m to West Virginia to resolve opioid cases stemming from that state, which was hit hard by the deadly drug addition epidemic.

Friday’s settlement by Kroger followed a collective $13.8bn in settlements reached in 2022 with three larger pharmacy chain operators, CVS Health Corp, Walgreens Boots Alliance and Walmart.

In a statement on Friday, the lead lawyers representing cities and counties in the litigation — Jayne Conroy, Paul Farrell and Joe Rice — called Kroger’s deal the first by one of the smaller, regional supermarket pharmacies that had played a role in the drug crisis.

“This $1.2bn agreement-in-principle is another step forward in holding each company that played a role in the opioid epidemic accountable and ensuring hard-hit communities are provided with much-needed resources,” the lawyers said. 

Reuters