Kroger to pay up to $1.4 billion to resolve opioid lawsuits

(Reuters) — Kroger said Friday it would pay as much as $1.4 billion to resolve thousands of lawsuits by states, local governments and Native American tribes claiming the supermarket chain’s pharmacies helped fuel the nation’s opioid epidemic.

Kroger agreed to pay up to $1.2 billion to states, counties and municipalities and $36 million to Native American tribes to resolve the majority of opioid cases it faced. It will also pay $177 million to cover attorneys fees and expenses.

Kroger took a $1.4 billion charge related to the tentative settlement, which is dependent on participation by 33 eligible states and the District of Columbia. The $1.2 billion would be paid out over 11 years.

The Cincinnati, Ohio-based supermarket chain, which is merging with smaller rival Albertsons, will not admit wrongdoing as part of the deal and said it will defend against any other claims the tentative settlement does not resolve.

In May, Kroger agreed to pay $62 million to West Virginia to resolve opioid cases stemming from that state, which was hit hard by the deadly drug addiction epidemic.

Friday’s settlement by Kroger follows a collective $13.8 billion in settlements reached last year with three larger pharmacy chain operators, CVS Health Corp., Walgreens Boots Alliance and Walmart.