Walgreens and CVS pay billions in deals on opioid cases

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$10 billion has been tentatively agreed to be paid out by CVS and Walgreens amid lawsuits brought by states and local governments that claim the retailers mishandled opioid painkiller prescriptions. 

Walmart has also tentatively agreed to pay $3 billion in lawsuits of the same matter. This deal won’t finalize until enough cities, counties, and states agree to the terms, according to Bloomberg. 

If the settlement is reached, CVS stated they would pay states nearly $5 billion over 10 years. The payments would begin in 2023. Walgreens stated they would pay nearly $5 billion as well but over 15 years instead. 

Walgreens commented, “We believe this is in the best interest of the company and our stakeholders at this time, and allows our pharmacists, dedicated healthcare professionals who live and work in the communities they serve, to continue playing a critical role in providing education and resources to help combat opioid misuse and abuse”.

They also commented, “We are pleased to resolve these longstanding claims and putting them behind us is in the best interest of all parties, as well as our customers, colleagues and shareholders,” said Thomas Moriarty, CVS’ general counsel, in a statement. “We are committed to working with states, municipalities and tribes, and will continue our own important initiatives to help reduce the illegitimate use of prescription opioids.”

Many US states and cities have claimed that opioid manufacturers, distributors, and pharmacies downplay the addiction risk and fail to stop pills from being used illegally, leading to over 3,000 lawsuits. 

The US opioid crisis is blamed for over 500,000 deaths in the last two decades, with 80,000 happening in 2021. An estimated 9.5 million Americans aged 12 and older reported in 2020 that they abused opioids, with 9.3 million using prescription pain relievers. 

The CDC’s National Center for Health Statistics found that synthetic opioids, mostly fentanyl, caused nearly two-thirds of more than 100,000 drug overdose deaths in a 12-month period ending in April 2021. This number is an increase of 49% from the year before. 

Walgreens, Walmart, and CVS were ordered by the court to pay a combined $650.6 million to two counties in Ohio due to damages related to the crisis. This lawsuit was originally filed in 2018. In order to address the many claims against opioid distributors and manufacturers, this lawsuit was originally part of a federal multidistrict litigation.

Many other companies, such as Purdue Pharma, Johnson & Johnson, McKesson Corp, Cardinal Health Inc, and AmerisourceBergen Corp have announced settlements that will cost the companies billions of dollars.