Another settlement deal has been reached in long-running nationwide opioid litigation, with two of the nation’s largest pharmacy chains—CVS and Walgreens—agreeing to a $10 billion tentative deal to end thousands of lawsuits brought by states, municipal, and tribal governments. If the deals are finalized, they would represent payouts from an arm of the pharmaceutical industry that was most resistant to settling, as most of the major opioid manufacturers and drug distribution companies have already reached agreements on payouts for their contribution to the opioid crisis. The pharmacy retailers had chosen instead to test their defense in court, while also reaching separate settlements in West Virginia and New York. But recent court decisions have gone against claims they were not liable in any way for turning a blind eye to the diversion of prescription opioids and ignoring red flags that the drugs were fueling addiction and overdoses across the country. As part of the deal, each company will pay $5 billion over 10 years for CVS, and 15 years for Walgreens, while not admitting to any wrongdoing for an epidemic that has claimed more than 500,000 American lives over the past decade. (Walmart, which was also part of the longstanding claims against pharmacies, is said to have reached a $3.1 billion settlement). The money will go to governments for social services related to opioid addiction, including education and prevention programs, but not to individuals or families impacted by the epidemic. With billions of dollars now being made available from the lawsuits, states are starting to use the money in different ways: Rhode Island, for example, is funding supervised injection sites. But as the final settlements come into focus, we need a clear and comprehensive blueprint for using these resources in the most effective way.
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Rosenthal Center for AddictIon Studies