Walmart Agrees to $3.1 Billion Opioid Settlement Framework

A woman pushes a shopping cart to enter a Walmart in Rolling Meadows, Ill., on Nov. 5, 2020. (Nam Y. Huh/AP Photo/File Photo)

Walmart has agreed to a $3.1 billion settlement framework to resolve allegations by authorities across several states over the retailer’s contribution to the national opioid crisis.

State, local, and tribal authorities accused the nation’s largest retail chain of failing to properly regulate its pharmacies’ opioid prescriptions, which led to millions of addictions and deaths across the United States.

The company also hopes that the Nov. 15 settlement will resolve the thousands of lawsuits over its role in the opioid crisis, if all conditions are satisfied.

The retail giant’s announcement comes after a similar settlement offer on Nov. 2 from the two largest American pharmacy chains, CVS Health and Walgreens, which all agreed to pay about $5 billion in damages.

“Walmart believes the settlement framework is in the best interest of all parties and will provide significant aid to communities across the country in the fight against the opioid crisis, with aid reaching state and local governments faster than any other nationwide opioid settlement to date, subject to satisfying all settlement requirements,” the company announced in a press release.

However, the retailer said that it still strongly disputes accusations of wrongdoing, noting that the terms of the settlement do not include any admission of liability.

Multiple lawsuits by both public and private parties said that Walmart’s pharmacies improperly filled prescriptions for powerful prescription painkillers.

The retailer, however, countered: “Walmart is proud of our pharmacists and our efforts to help fight the opioid crisis. Walmart strongly disputes the allegations in these matters, and this settlement framework does not include any admission of liability. Walmart will continue to vigorously defend the company against any lawsuit not resolved through this settlement framework.”

A multi-state coalition, co-led by New York Attorney General Letitia James, announced that any settlement will “include broad, court-ordered requirements Walmart must comply with, such as robust oversight to prevent fraudulent prescriptions and flag suspicious prescriptions.”

Attorneys general from other states, including California, Colorado, Connecticut, Delaware, Illinois, Indiana, Iowa, Louisiana, Massachusetts, Nebraska, North Carolina, Ohio, Pennsylvania, Tennessee, and Texas, also participated in negotiations in the agreement.

“Attorney General James and her colleagues are optimistic that the settlement will gain support of the required 43 states by the end of 2022, allowing local governments to join the deal during the first quarter of 2023,” said James’s office in a press statement.

State Attorneys General Pursue Big Pharma and Retailer for the Opioid Crisis

The New York State attorney general’s office also said that “promising negotiations,” are still ongoing with other pharmacies, such as Walgreens and CVS.

Walmart hopes that the framework will virtually resolve most opioid lawsuits and any potential lawsuits by state, local, and tribal governments, in the expectation that all parties are satisfied by the terms.

The $3.1 billion payout represents about 2 percent of the retailer’s quarterly revenue, according its latest earnings report.

New York State would receive up to $116 million as part of the agreement.

The deal is still pending approval from James’s counterparts, who are expected to accept Walmart’s settlement offer by the end of the year. The Walmart deal must be approved by an overwhelming majority of state and local governments to take full effect.

Attorneys representing the local governments said the retailer would pay most of the settlement in 2023 if the deal is finalized, reported the Associated Press.

Tribal authorities would be paid $89 million from Walmart deal, Steve Skikos, an attorney for the tribes, told The New York Times.

The cash that the tribes will receive from Walmart and other pharmaceutical settlements will go toward drug treatment and education programs to help communities fight a massive addiction crisis, now mainly led by fentanyl.

The Walmart deal comes after James’s office announced a separate $523 million deal from Teva Pharmaceuticals, and affiliates, for its role in the opioid crisis, putting an end to the state’s pursuit against painkiller manufacturers and distributors which are not currently in bankruptcy proceedings.

Most of the pharmaceutical and distribution companies that produce and sold the opioids have already reached settlements.

The latest agreements are beginning to settle the question as to whether companies should be held accountable for allowing prescription drugs to flood the market and causing irreparable harm to those who became addicted.