Walgreens, CVS, Allergan, and Teva have agreed to pay a combined settlement of over $17 billion to the state of California in recognition of their alleged role in fueling the opioid crisis. California Attorney General Rob Bonata announced this settlement last week.
The agreement was made public towards the end of 2022, and as part of the settlement, CVS and Walgreens will pay $5 billion and $5.7 billion, respectively, to settle claims dating back a decade or more.
Regarding Allergan and Teva, prescription opioid maker Allergan will pay $2.37 billion, while Teva will pay $4.25 billion. Both companies are accused of downplaying the risks of addiction and overstating the benefits of opioids.
Although Walmart has not officially settled with the state, the Department of Justice expects the company to settle soon by paying $3.1 billion.
The Department of Justice has also announced that these settlements will be used to improve facilities for substance abuse patients, increase training for first responders and law enforcement personnel dealing with such cases, and enhance the availability of Narcan, an anti-overdose nasal spray.
Opioid crisis at-risk groups:
- Special attention will be given to addressing the needs of vulnerable populations, such as people of color and the homeless.
- In 2019, as reported by Scientific American, the drug overdose death rate among Black Americans surpassed that of White Americans for the first time.
- When compared to other racial groups, the rate at which opioid-related deaths occur among black men over the age of 55 is four times higher.
In addition to California’s settlement, New Mexico has reached a $500 million settlement with Walgreens for the pharmacy chain’s involvement in the state’s opioid epidemic. This settlement follows the $274 million obtained from Albertsons, CVS, Kroger, and Walmart last fall.
Although an agreement was reached with Walgreens in March, the confidentiality agreement has only been lifted recently. The final settlement amount was determined after District Judge Francis J. Mathew ordered the pharmacy chain to fund a $24 billion abatement plan. This decision was prompted by Walgreens’ failure to recognize suspicious prescriptions.
Co-lead counsel for New Mexico, Dan Alberstone, stated, “Too many lives have been lost or ruined as a result of the opioid crisis. The burden on families, both financially and emotionally, is immeasurable. That said, this settlement is a major step in our effort to hold companies like Walgreens accountable for their egregious conduct, and we expect the outcome of this case will not only cause these corporate wrongdoers to change their behavior but, most importantly, put New Mexico on a path to recovery.”
This settlement represents the largest obtained from a single defendant in the state’s history by the attorney general. Additionally, when it comes to nationwide settlements, Walgreens’ agreement with New Mexico is an example of a single opioid defendant making one of the largest separate settlements.
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