Walmart Inc (NYSE:WMT) has announced a plan worth US$3.1bn to settle lawsuits related to the alleged mis-selling of opioids at its pharmacies.
Accused of improperly filling prescriptions for powerful painkillers, the retail giant denied the allegations but has joined other US pharmacy chains, CVS Health and Walgreen Co, in moving to settle lawsuits.
Over the past two decades, an opioid epidemic has seen more than 500,000 deaths in the US, something Walmart and its counterparts have been blamed for being partially responsible.
As a result of its US$3.1bn payment proposal, Walmart posted a net loss in the third quarter but still raised guidance for full-year earnings and revenues amid strong demand for groceries.
Its settlement has been hailed amid its removal of “a large unknown from the street,” said Brian Mulberry of Zacks Investment Management, however it remains to be seen as to whether the plan will be accepted by 43 states as required.
Pfizer Inc (NYSE:PFE) is also facing challenges after millions of Americans reported experiencing harmful side effects from some of its drugs.
Its Zantac drug, which was on the market until 2019, was found to increase the risk of cancer among patients leading to thousands of lawsuits against the company.
Meanwhile, its Nexium drug, which allegedly causes kidney damage, has also landed the pharma company in trouble, with a settlement needing to be reached before March 2023 if it is to avoid trials.