CVS, Walgreens Agree to $10 Billion Settlement Related to Opioid Crisis Walmart is also reportedly contributing some $3 billion.
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Three major companies reached an agreement to pay over $12 billion to settle a host of litigation related to the distribution of opioids, Bloomberg Law first reported Wednesday.
The suit agreement is intended to encapsulate lawsuits brought by various state and local governments — if the governmental bodies themselves agree to it.
"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," Thomas Moriarty, chief policy officer and general counsel at CVS Health said in a statement.
The suit was filed by six attorneys generals and contends that pharmacies did not pay enough heed to opioid prescription issues.
This is one of several legal battles related to the opioid crisis. In February, distributors such as Johnson & Johnson agreed to pay $25 billion for contributing to the epidemic.
According to the U.S. Department of Health and Human Services, pharmaceutical companies told doctors that opioids were not addictive, leading to widespread misuse, addiction, and death. Some 80,000 people died from an overdose related to opioids in 2021, per the Centers for Disease Control and Prevention.
Lawsuits against stakeholders in the crisis have garnered some $30 billion, according to Bloomberg data, the outlet reported. The money is often used for drug enforcement and treatment.
This proposed agreement would require CVS to pay roughly $5 billion, with $130 million of that going to Native American tribes, over 10 years starting next year if people agree to it, the company said in a release.
"The agreement would fully resolve claims dating back a decade or more and is not an admission of any liability or wrongdoing. CVS Health will continue to defend against any litigation that the final agreement does not resolve," the company noted.
CVS and Walgreens have confirmed how much they will pay, with the latter contributing about $4.95 billion, but Walmart has not as of late Wednesday morning. Bloomberg reported the company is slated to contribute $3 billion, citing sources familiar.
According to the New York Times, this does not take care of the other lawsuits, including the ones Walgreens is facing in San Francisco and New Mexico.
However, one lawyer on the government side said that they hope various bodies will go on this deal (though it's not certain how many will do that), the outlet noted.
"We encourage all states, subdivisions and Native American tribes to join us once these agreements and allocation processes are finalized to expedite the process of providing these lifesaving resources where they are needed most," they said.
