CVS Health Corp (NYSE:CVS), Walgreens Boots Alliance Inc (NASDAQ:WBA), and Walmart Inc (NYSE:WMT) have agreed to pay about $13.8 billion to resolve thousands of US state and local lawsuits accusing the pharmacy chains of mishandling opioid pain drugs.
CVS said on Wednesday it had agreed to pay about $5 billion over 10 years, and Walgreens said that it had agreed to pay about $5.7 billion over 15 years. Neither company admitted wrongdoing.
Walmart has agreed to pay $3.1 billion, mostly upfront, Reuters reported, citing two people familiar with the matter.
READ: Chemist chains helped drive US opioid crisis, jury concludes
Paul Geller, one of the lawyers who negotiated for the governments, said that settlements with pharmacies "will bring billions of additional dollars to communities that are desperate for funds to combat the epidemic" of opioid addiction, Reuters added.
"We know that reckless, profit-driven dispensing practices fueled the crisis; but we know just as surely that with better systems in place and proper heeding of red flag warnings, pharmacies can play a direct role in reducing opioid abuse and in saving lives," Geller said, the newswire reported.
CVS general counsel Thomas Moriarty said in a statement the company was pleased to resolve the claims and the deal was "in the best interest of all parties, as well as our customers, colleagues and shareholders."
Walgreens in a statement said: "As one of the largest pharmacy chains in the nation, we remain committed to being a part of the solution, and this settlement framework will allow us to keep our focus on the health and wellbeing of our customers and patients, while making positive contributions to address the opioid crisis."
Both CVS and Walgreens said their agreements would not be final until certain non-monetary terms were worked out, and that the total amount could be reduced if not enough government plaintiffs sign on.
The proposed settlement, which would be the first nationwide deal with retail pharmacy companies, follows nationwide opioid settlements with drugmakers and distributors totaling more than $33 billion.
CVS, Walgreens and Walmart are the three largest retail pharmacies in the country by market share. If their settlement becomes final, it will put much of the sprawling, years-long litigation over opioids to rest, though cases are still pending against smaller, more regionally focused pharmacy operators including Rite Aid Corp and Kroger Co.
Overdoses involving opioids, including prescription pills and heroin, surged during the COVID-19 pandemic, increasing 38% in 2020 over the previous year and another 15% in 2021, according to the US Centers for Disease Control and Prevention.
The agency attributed much of the recent rise in overdose cases to illegally manufactured fentanyl, a powerful synthetic opioid.
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