Kroger To Pay $1.2 Bln To Settle Opioid Claims

(RTTNews) - Supermarket chain Kroger Co. (KR) 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 opiod claims.

Kroger said the settlement would allow for the full resolution of all claims on behalf of participating states, subdivisions and tribes. However, Kroger said the settlement is not an admission of wrongdoing or liability.

Kroger has become the latest retail pharmacy chain to announce a nationwide settlement agreement after Walgreens, CVS and Walmart did last fall.

Kroger has agreed to pay up to $1.2 billion to states and subdivisions and $36 million to Native American tribes in funding for abatement efforts, both to be paid over 11 years in equal installments. The company will also pay about $177 million to cover attorneys' fees and costs, to be paid over 6 years in equal installments.

"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.

Meanwhile, the company posted a net loss for the second quarter as it took a $1.4 billion charge related to the settlements and associated legal fees.

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.