Overview of Opioid Class Action Settlements
CVS and Walgreens have reached preliminary settlements totaling $10 billion regarding opioid claims, while Walmart has agreed to a provisional settlement of $3.1 billion. Collectively, these agreements bring the total opioid class action settlement funds in the United States to over $54.1 billion.
Purpose of the Opioid Settlements
The cumulative opioid settlements have surpassed $54 billion, aimed at addressing the opioid and painkiller abuse epidemic that has plagued the United States for decades. These settlements hold pharmacies and merchants accountable for their role in the suffering and fatalities caused by opioids. The most recent settlements involve CVS, Walgreens, and Walmart pharmacies.
CVS and Walgreens have tentatively agreed to pay a historic $10 billion to settle class action lawsuits filed by various states and local governments, alleging that they mishandled opioid prescriptions, leading to overdoses and fatalities. Walmart’s provisional settlement addresses similar claims for $3.1 billion, pending acceptance by numerous states, counties, and towns.
Background on Opioid Class Actions
Since 2013, increasing numbers of state, municipal, and tribal governments have sought to hold pharmaceutical companies accountable for the ongoing costs associated with addiction, death, and crime related to the opioid crisis. While many major opioid producers and distributors have settled for billions, retail chains have been slower to reach agreements. Common opioids involved in these settlements include:
- Oxycodone
- OxyContin
- Roxicodone
- Morphine
- Hydrocodone
- Methadone
- Fentanyl (notorious for its high rate of overdose deaths)
Recent developments indicate a shift toward holding retailers accountable in opioid-related class action lawsuits.
Future of the CVS Opioid Class Action Settlement
CVS has stated that if a settlement is finalized, it will pay nearly $5 billion over the next ten years, starting in 2023. Of this, $4.9 billion will be allocated to states and local governments, while Native American tribes will receive $130 million for their opioid claims. This settlement is expected to resolve all opioid-related litigation against CVS without admitting wrongdoing.
Recent Trends in Opioid Litigation
The opioid crisis has continued to worsen amid ongoing litigation and settlement talks. In 2017, the U.S. experienced a record number of opioid overdose deaths, primarily linked to fentanyl and other illegal opioids. While pharmacies were initially reluctant defendants, a federal court ordered CVS, Walgreens, and Walmart to pay $650 million to two Ohio counties in August, with additional claims emerging from Florida, West Virginia, and New York.
Historically, these pharmacies denied any responsibility, claiming they only dispensed legally prescribed medications. However, plaintiffs argue that manufacturers ignored warnings about excessive opioid prescriptions.
Walgreens Opioid Class Action
Walgreens announced plans to allocate nearly $4.79 billion for remediation payments over 15 years, which includes class action payouts. This figure encompasses approximately $154 million for participating tribes and over $750 million for legal fees.
Outlook for Opioid Settlements
Major players in the opioid supply chain, from producers to retailers, are currently negotiating settlements that could exceed $50 billion. The “big three” distributors—McKesson, AmerisourceBergen, and Cardinal Health—have contributed an additional $7.5 billion, bringing the total settlements with American governments to around $54.07 billion.
Purdue Pharma plans to contribute between $5.5 billion and $6 billion, pending appeal outcomes. Mallinckrodt is expected to add $1.7 billion, while Teva Pharmaceuticals anticipates contributing $4.25 billion. Allergan, a division of AbbVie, is set to provide $2.37 billion, and Endo Pharmaceuticals will contribute $450 million as part of their bankruptcy resolution and preliminary agreements with state attorneys general.