CVS and Walgreens agree to pay $10 billion to settle opioid claims

Photo: CVS Health

CVS Health and Walgreens Boots Alliance have announced an agreement to pay $10 billion to substantially resolve all opioid lawsuits and claims against the companies.

If all conditions are satisfied and the nonmonetary terms are finalized – which still need to be determined – CVS Health said it has agreed to pay approximately $5 billion ($4.9 billion to states and political subdivisions, and approximately $130 million to tribes) over the next 10 years, beginning in 2023, depending on the number of governmental entities that agree to join the settlement. 

The agreement would fully resolve claims dating back a decade or more, and it is not an admission of any liability or wrongdoing. CVS Health said it would continue to defend against any litigation that the final agreement does not resolve. 

The timing of cash settlement payments, spread over multiple years, allows the company to continue to invest in its strategic priorities, CVS said. 

Walgreens said it also expects to settle all opioid claims against it by participating states, subdivisions and tribes, for up to approximately $4.95 billion in remediation payments to be paid out over 15 years. The settlement frameworks include no admission of wrongdoing or liability by the company.

Walgreens said: "As one of the largest pharmacy chains in the nation, we remain committed to being a part of the solution, and this settlement framework will allow us to keep our focus on the health and wellbeing of our customers and patients, while making positive contributions to address the opioid crisis. We believe this is in the best interest of the company and our stakeholders at this time, and allows our pharmacists, dedicated healthcare professionals who live and work in the communities they serve, to continue playing a critical role in providing education and resources to help combat opioid misuse and abuse."

"We are pleased to resolve these longstanding claims and putting them behind us is in the best interest of all parties, as well as our customers, colleagues and shareholders," said Thomas Moriarty, chief policy officer and general counsel, CVS Health. "We are committed to working with states, municipalities and tribes, and will continue our own important initiatives to help reduce the illegitimate use of prescription opioids."

WHY THIS MATTERS

Widespread opioid abuse has claimed more than half a million lives and has triggered more than 3,000 lawsuits, according to The Wall Street Journal.

Members of the Sackler family who own Purdue Pharma and grew wealthy from sales of OxyContin agreed earlier this year to pay up to $6 billion to settle lawsuits accusing them of helping fuel the opioid-addiction epidemic, according to the WSJ report. 

In April, CVS Health entered into an agreement with the State of Florida to pay the state $484 million to resolve claims dating back more than a decade related to prescriptions for opioid medications that were filled at Florida CVS Pharmacy locations.

In 2019, four pharmaceutical companies reached a $260 million settlement in an opioid case before a trial began.

THE LARGER TREND

CVS Health said it has undertaken numerous initiatives to fight opioid abuse, including making significant investments in technology and procedures to support its pharmacists in exercising their professional obligations.

Walgreens also has taken a number of actions over many years to respond to the opioid crisis, it said, including making Naloxone, the opioid overdose-reversal medication, available in all Walgreens pharmacies nationwide (nearly 9,000 stores total).

Twitter: @SusanJMorse
Email the writer: SMorse@himss.org