CVS, Walgreens announce opioid settlements totaling $10 billion

The two largest U.S. pharmacy chains, CVS Health and Walgreen Co., announced agreements in principle Wednesday with a bipartisan group of attorneys general to pay about $5 billion each to settle lawsuits nationwide over the toll of opioids.

A lawyer said Walmart, a third pharmacy behemoth, is in discussions for a deal.

The prospective settlements are part of a shift in the legal landscape surrounding the opioid epidemic.

Instead of suspense over whether companies in the drug industry would be held to account through trials or settlements, the big question is now how their money will be used and whether it will make a difference in fighting a crisis that has only intensified.

The deals, if completed, would end thousands of lawsuits in which governments claimed pharmacies filled prescriptions they should have flagged as inappropriate.

With settlements already proposed or finalized between some of the biggest drugmakers and distribution companies, the recent developments could be the among the last multibillion-dollar settlements to be announced.

They also would bring the total value of all settlements to more than $50 billion, with most of it required to be used by state and local governments to combat opioids, which have been linked to more than 500,000 deaths in the United States over the last two decades.

“While significant work remains, a broad coalition of states is making progress in our negotiations with the pharmacies,” Iowa Attorney General Tom Miller said of the agreement in a news release Wednesday.

“We are hopeful that we will be able to reach a final agreement on all terms and provide meaningful resources to those suffering from opioid use disorder.”

Neither Woonsocket, R.I.-based CVS nor Deerfield, Il.-based Walgreens is admitting wrongdoing.

Under the tentative plans, CVS would pay $4.9 billion to local governments and about $130 million to Native American groups over a decade.

Walgreens would pay $4.8 billion to governments and $155 million to Native American groups over 15 years.

The exact amount depends on how many governments join the deals.

A lawyer for governments in the lawsuits said talks with Walmart continue. Walmart representatives would not comment Wednesday.

If these settlements are completed, they would leave mostly smaller drug industry players as defendants in lawsuits.

The Gazette contributed to this report.