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Pharmacy store chains CVS and Walgreens announced on Wednesday they have agreed to pay a total of nearly $10 billion to “substantially resolve” various opioid-related lawsuits launched against them.
CVS and Walgreens are the two largest pharmacy chains in the United States by market share. The settlements, if finalized, would be the first nationwide deal reached with retail pharmacy companies, and could be among the largest settlements related to the opioid crisis.
CVS announced in a release that it agreed in principle to pay about $4.9 billion to states and political subdivisions—such as cities and counties. It would also pay about $130 million to native tribes. The payments will be made over the next 10 years starting in 2023.
In a release, CVS stated that the settlement “would fully resolve claims dating back a decade or more.” CVS added that it “will continue to defend against any litigation that the final agreement does not resolve.”
Meanwhile, Walgreens announced in a release it agreed in principle to pay about $4.95 billion to states, subdivisions, and tribes as part of settlement frameworks to resolve the opioid-related legal challenges. The payments would be made over 15 years.
The exact amount to be paid would depend on how many governments plaintiffs take up on the deals, and could be reduced if not enough sign on, the companies noted.
CVS and Walgreens both said the agreements are not final until all conditions are satisfied and non-monetary terms are finalized.
Both companies also noted that the settlements do not constitute any admission of wrongdoing or liability.
Opioids have been linked to more than 500,000 deaths in the United States over the last two decades. Governments have alleged in legal challenges over decades that the pharmacies have filled prescriptions they should have flagged as inappropriate.
