Kroger will pay up to $1.2 billion to settle most nationwide opioid claims

Kroger on Friday said it has agreed to pay $1.2 billion to U.S. states, local governments and Native American tribes to settle the majority of claims that it fueled the opioid epidemic through lax oversight of its pill sales. This settlement will allow “full resolution” for all claims made by these parties. Kroger announced this in a press release before its second quarter earnings. The company stressed that the settlement does not constitute an admission of guilt or wrongdoing.

“Kroger will continue to vigorously defend against any other claims and lawsuits relating to opioids that the final agreement does not resolve,” the company said in the release

Shares of Kroger fell more than 1% in premarket trading Friday.

Kroger has agreed to pay $1.2 billion over 11 years to U.S. States and Subdivisions, and $36 millions to Native American Tribes. The company expects a $1.4 billion charge related to the settlements and associated legal fees during the second quarter.

State and local governments have filed thousands of lawsuits against drug companies and wholesalers accused of contributing to the oversupply of prescription drugs that fueled the opioid epidemic, resulting in a plethora of settlement deals.

Several companies announced nationwide opioid settlements within the last year.

In November,

Walgreens agreed to pay $4.95 billion to U.S. states, subdivisions and tribes to settle all opioid claims. The company also settled with West Virginia, which had the highest number of opioid-related overdose deaths nationwide, in January for $83 millionWalmart

in December finalized a $3.1 billion nationwide settlement agreement with all U.S. states and local governments to resolve all opioid-related lawsuits. Walmart settled with West Virginia last fall for $65 Million. Last year,

CVS settled with the state for $82.5 million and Rite Aid settled for up to $30 million.More than 564,000 people died from overdoses involving any opioid, including prescription and illicit opioids, from 1999 to 2020, according to the latest data from the Centers for Disease Control and Prevention.

This is breaking news. Please check back to see updates.