Grocery Giant Kroger Must Pay $122M To CA For Role In Opioid Crisis

CALIFORNIA — The supermarket giant Kroger, which owns Ralphs and other prominent grocery chains, has agreed to pay California up to $122 million stemming from the company's alleged role in the opioid crisis.

The high-dollar amount is part of a $1.37 billion settlement agreement reached in September 2023 and finalized Monday with Ohio-based Kroger following a complaint initiated by dozens of states, including California. The settlement resolves allegations that Kroger failed to appropriately oversee the dispensing of opioids at its pharmacies and, therefore, helped fuel a public health disaster.

According to the finalized settlement agreement, several Native American tribes, 34 states, and thousands of local governments are entitled to payment. Only the state of Ohio is expected to receive more than California, the agreement shows.

"The funds secured in this settlement will allow the state and eligible cities and counties to continue addressing the harms inflicted by this epidemic through comprehensive prevention, treatment and recovery programs, and other resources," California Attorney General Rob Bonta said Monday.

In an emailed statement to Patch, a Kroger spokesperson said, "We are pleased that Kroger’s previously announced multistate settlement received enough state and subdivision participation to become effective and binding. The finalization of this settlement, originally reached in September 2023, will deliver over $1.2 billion in support of opioid abatement efforts nationwide while resolving nearly all the outstanding opioid-related claims against the company.

"Kroger will continue to combat opioid abuse, and it remains focused on providing fresh and affordable groceries to communities across the country."

The Kroger settlement is one of many high-profile multi-state agreements announced over the last several years involving opioids and prescription drug manufacturers, wholesalers, consultants and pharmacies.

Walgreens, CVS Health and Walmart reached similar settlements in 2022 totaling about $13 billion. In July, Rite Aid Corporation agreed to settle a similar multi-million-dollar case brought forward by the U.S. Department of Justice.

Bonta said California is expected to receive up to $4.2 billion under various opioid settlements, with the bulk going to local governments. Bonta has issued guidance to jurisdictions with suggestions on the permissible use of opioid settlement funds.

The guidance "is aimed at helping local governments maximize impact, save lives, and strengthen public health infrastructures to tackle the opioid and fentanyl crisis," according to Bonta's office.

In addition to payments, Kroger has agreed to injunctive relief that requires its pharmacies to monitor, report, and share data about suspicious activity related to opioid prescriptions. Kroger operates in California through a number of subsidiaries, including Food 4 Less, QFC and Ralphs.

Opioids are a class of drugs that include prescription pain relievers such as oxycodone, hydrocodone, codeine, morphine, fentanyl and many others.

In the 1990s, intensified marketing of newly reformulated prescription opioid medications, like OxyContin, along with influential pain advocacy campaigning that encouraged greater pain management, led to a "precipitous rise in opioid use in the United States," according to congressional analysis.