CVS, Walgreens agree to pay $10.7 billion to 17 states to settle opioid prescription lawsuits
Though the drug chains have not admitted to wrongdoing, CVS would pay $5 billion while Walgreens would pay $5.7 billion to states and local governments for opioid crisis abatement and remediation programs.
Attorneys general around the country announced a $10.7 billion multistate settlement agreement with Walgreens and CVS, bringing the total of multistate settlements with the opioid industry to more than $50 billion.
Joining Connecticut in leading the negotiations were attorneys general from California, Colorado, Delaware, Illinois, Indiana, Iowa, Kentucky, Louisiana, Massachusetts, Nebraska, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Tennessee and Texas.
New York will receive more than $458 million as part of the settlement, bringing the total amount secured by Attorney General Letitia James’ office in litigation over the opioids crisis to more than $2.5 billion.
“Though we cannot reverse the devastation, my fellow attorneys general and I are committed to holding those who allowed this epidemic to run rampant through our country to account,” James said in a news release. We have now recovered $2.5 billion for New York from opioids manufacturers and distributors, and with those funds we will continue to support and expand abatement, treatment, and prevention efforts statewide.”
The agreement stipulates that CVS will pay $5 billion and Walgreens $5.7 billion.
Related: Judge orders CVS, Walmart and Walgreens to fund $650M opioid abatement
California Attorney General Rob Bonta said in a news release that the $5.7 billion settlement with Walgreens would make California eligible to receive $500 million in abatement.
“This settlement is another win in our ongoing fight to bring help and healing to California communities harmed by the opioid crisis,” Bonta said. “To all those struggling with substance abuse disorders, to all those desperately in need of treatment and recovery options—help is on the way. The California Department of Justice is working to bring valuable funding to our state’s efforts to combat the opioid crisis from the companies who once chose profits over the well-being of our communities.”
According to the press release, the settlements with CVS and Walgreens would bring in $25.2 million to Delaware.
“The true cost of the epidemic is measured in lives, not dollars,” Delaware Attorney General Katy Jennings said. “Delaware has suffered one of the nation’s worst fatal overdose rates — just four days ago, public health officials announced that November 2022 is expected to set a new record for overdose fatalities. This is an especially painful time of year for families who have lost loved ones, and I am mindful of the fact that no amount of money can fully repair the damage done to our state. The task ahead of us is to save as many lives as we can; to support Delawareans in recovery; and to continue to hold Big Pharma accountable for its hand in the crisis.”
Pennsylvania Attorney General Josh Shapiro announced his state will receive more than $450 million from the settlements.
“No amount of money will bring back the lives we lost, but today’s agreement with CVS and Walgreens will help to ensure Pennsylvanians suffering from opioid addiction get the treatment and recovery resources they need,” Shapiro said. “My office is determined to hold accountable the greedy companies that created and jet-fueled the opioid epidemic. Today’s action sends a message to drug distributors and pharmaceutical companies that we’re here to always fight for the people we serve.”
According to a Connecticut press release, a court-ordered injunctive relief requires CVS and Walgreens to keep tabs on “suspicious” activity with any opioid prescriptions, and to report and share any data related to this issue.
The terms of the agreements will now go to the states to be reviewed, and the states have until the end of 2022 to join.