CVS, Walgreens announce $10B in opioid settlements

Two of the largest U.S. pharmacy chains, CVS Health and Walgreen Co., announced agreements in principle Wednesday to pay about $5 billion each to settle lawsuits nationwide over the toll of opioids, and a lawyer said Walmart is in discussions for a deal.

Together, the developments amount to what could be the last round of huge settlements after years of litigation over the drug industry’s role in an overdose crisis that has been linked to more than 500,000 deaths in the U.S. over the past two decades.

In the lawsuits, governments said pharmacies filled prescriptions they should have flagged as inappropriate.

The deals call for most of the funds from Woonsocket, Rhode Island-based CVS and Deerfield, Illinois-based Walgreens to be used to fight the opioid crisis through such efforts as expanding treatment and support programs for people with addiction, along with providing overdose antidotes and launching prevention efforts.

In a conference call with analysts Wednesday, CVS Health CEO Karen Lynch said the deal sprang from mediation discussions that started last month.

Under the tentative plans, CVS would pay $4.9 billion to local governments and about $130 million to Native American tribes over a decade. Walgreens would pay $4.8 billion to governments and $155 million to tribes over 15 years. The exact amount depends on how many governments join the deals.

The companies noted they have have launched educational programs and installed safe disposal units for drugs in stores and police departments, among other measures designed to reduce misuse of opioids.

Neither CVS nor Walgreens is admitting wrongdoing.

Paul Geller, a lawyer for governments in the lawsuits, said talks with Walmart continue. Walmart representatives would not comment Wednesday.



Oxycodone pills are shown, June 17, 2019. On Wednesday, Nov. 2, 2022, CVS Health said it has agreed to pay about $5 billion to state, local and Native American tribal governments to settle lawsuits over the toll of opioids. CVS is not admitting wrongdoing and the company would make the payments over a decade. (AP Photo/Keith Srakocic, File)