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The opioid crisis affects communities throughout the United States across all demographics. Facing thousands of lawsuits, pharmacy companies accused of improperly dispensing opioid drugs recently agreed to pay billions in damages for their role in a crisis that has claimed over 760,000 lives since 1999, according to the U.S. Department of Health and Human Services.
On November 2, 2022, CVS and Walgreens, two of the largest U.S. drugstore chains, and Walmart, the largest retail store chain in the U.S., signed agreements to pay roughly $13.8 billion to state, municipal, and tribal governments to settle legal disputes related to opioids. Paul Geller, one of the lawyers who negotiated on behalf of the governments, said that the settlements “will bring billions of additional dollars to communities that are desperate for funds to combat the [opioid] epidemic.” The settlements do not include an admission of wrongdoing.
“Although we can’t reverse the effects of this greed-driven epidemic, the settlements may provide some relief to communities most affected by wrongful opioid dispensing. These settlements send a strong message that pharmacies and other actors in the pharmaceutical supply chain must be good corporate citizens and conduct themselves in a lawful manner,” said John H. Ruiz, Founder and CEO of LifeWallet powered by MSP Recovery.
Pursuant to the settlements, CVS will pay $4.9 billion to state and municipal governments over the next 10 years and about $130 million to tribal governments. Walgreens agreed to pay $5.7 billion over 15 years and Walmart will pay $3.1 billion, mostly upfront, according to Reuters. “We are pleased to resolve these long-standing claims, and putting them behind us is in the best interest of all parties, as well as our customers, colleagues and shareholders. We are committed to working with states, municipalities and tribes, and will continue our important initiatives to help reduce the illegitimate use of prescription opioids,” said Thomas Moriarty, CVS Health’s chief policy officer, and general counsel.
The U.S. Congress Joint Economic Committee estimated that the opioid epidemic cost the United States nearly $1.5 trillion in 2020 alone, meaning these settlements represent a small fraction of the financial damage caused.
Emerging in blue-collar communities in the 1990s, the opioid crisis spread like wildfire across American communities without regard to socioeconomic status. Additional lawsuits are pending or have been settled against a myriad of drug manufacturers accused of orchestrating the opioid epidemic, as well as pharmaceutical wholesalers, consulting firms, and other actors in the pharmaceutical supply chain. Although these cases raise awareness of wrongful opioid prescription and dispensing, effects of the epidemic will likely persist for decades.
Joaquín Núñez es licenciado en comunicación periodística por la Universidad Católica Argentina. Se especializa en el escenario internacional y en la política nacional norteamericana. Confeso hincha de Racing Club de Avellaneda. Contacto: [email protected] // Joaquín Núñez has a degree in journalistic communication from the Universidad Católica Argentina. He specializes in the international scene and national American politics. Confessed fan of Racing Club of Avellaneda. Contact: [email protected]