CVS, Walmart, Walgreens to settle opioid lawsuit with $13.8B payout

CVS Health Corp., Walmart Inc., and Walgreens Boots Alliance Inc. have all agreed to settle their opioid lawsuit in the United States. It was reported that the three companies have tentatively concurred to pay a collective amount of $13.8 billion.

Their agreement to the settlement is part of their effort to resolve the lawsuits filed against them by thousands of state and local governments. Sources who are familiar with the deal said that CVS Health, Walgreens, and Walmart were all accused of mishandling the sale and distribution of opioid painkillers.

According to Reuters, the proposed settlement will push CVS to pay $5 billion in 10 years, while it will be $5.7 billion for Walgreens to be paid in 15 years, and Walmart will have to shell out $3.1 billion, mostly in advance.

The spokesperson of the group that brought the companies to court was not able to immediately respond to a request for a comment on this latest development in the case. The settlement is said to be the first nationwide deal involving retail pharmacy companies.

Moreover, the settlement is part of the 3,300 lawsuits that have been slapped against the drugmakers since 2017. The plaintiffs also include state and local governments that alleged the drug manufacturers are playing down the risks of their opioid medicines used for pain. They also said that distributors and pharmacies were ignoring red flags as prescriptions were being turned into illegal trafficking.

Walmart, CVS, and Walgreens are three major pharmacies in the U.S., and if the settlement is finalized, it will put an end to the years-long legal battle over opioids. The plaintiffs claimed that the distribution of opioids resulted in a human toll and caused a nuisance to the public, and companies must pay to fix everything.

"Once effectuated, these agreements will be the first resolutions reached with pharmacy chains and will equip communities across the country with the much-needed tools to fight back against this epidemic and bring about tangible, positive change," BBC News quoted the legal team of the plaintiffs as saying in a statement.

Meanwhile, aside from CVS, Walmart, and Walgreens, smaller pharmacy brands such as Kroger Co. and Rite Aid are also said to be facing similar lawsuits, but their cases are still pending.

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