CVS Health and Walgreen Co., two of America’s largest pharmaceutical chains, have announced agreements in principle Wednesday to pay about $5 billion each to settle nationwide lawsuits over the toll of opioids, CBS News reported.
These two chains are the first major pharmacies in the country to settle lawsuits alleging that they improperly handled prescriptions of opioid painkillers. CBS News reported that CVS would be paying $5 billion in 10 year payments.
CVS made the announcement on Wednesday as it announced its proposed agreement, just as it published its quarterly earnings. CBS News reported that although the company did not admit to wrongdoing or liability, it said that nonfinancial terms were still being resolved. However, the company suffered a loss of $3.4 billion in the quarter due to the settlement.
“We are pleased to resolve these longstanding claims and putting them behind us is in the best interest of all parties, as well as our customers, colleagues and shareholders,”Thomas Moriarty was the CVS chief officer and general counsel, according to a statement. “We are committed to working with states, municipalities and tribes, and will continue our own important initiatives to help reduce the illegitimate use of prescription opioids.”
Opioids, the powerful and addictive class of both prescription and illegal drugs, have been the cause for more than 500,000 overdose deaths over the past two decades including more than 80,000 in 2021 alone, CNN reported.
Walgreens, however, has filed a U.S. Securities and Exchange Commission filing stating that it had reached an agreement to pay approximately $5.7 billion in 15-year terms. Reuters reported.
Reuters stated that Walgreens has not admitted any wrongdoing.
According to Reuters, the two companies CVS and Walgreens said that their agreements wouldn’t be finalized until certain non-monetary terms had been worked out and that the total amount could be reduced if there aren’t enough government plaintiffs.