Raoul, AG's Announce $10.7B Opioid Settlement With Walgreens, CVS

DEERFIELD, IL — Illinois Attorney General Kwame Raoul announced a $10.7 billion settlement with Walgreens and CVS on Monday, which resolves allegations that both retailers contributed to the nation’s opioid addiction crisis by failing to oversee how both stores distributed the medications in their respective stores.

The settlement will be paid out both nationally and at the local level and requires that both Walgreens and CVS stores show significant improvements in how they distribute opioids in the future. Raoul worked with a coalition of 17 attorneys general, which represented local governments across the nation in the settlement effort, according to a news release.

The settlement offer will be sent to states, who have until the end of 2022 to sign-on for a portion of the settlement, the release said. Local governments will then have 90 days after that to file for a portion of the settlement as well.

The $10.7 billion settlement will be divided among sign-on states, local governments and tribes, and will prioritize abatement and remediation of the opioid crises, the coalition of attorneys general announced on Monday.

“The opioid epidemic has tragically affected too many Illinois families that have experienced addiction or even the death of a loved one. This $10.7 billion settlement with Walgreens and CVS builds upon the important progress we’ve already achieved with previous settlements, but more importantly, it holds both companies accountable,” Raoul said.

“I am proud of the bipartisan work we are doing across state lines to hold retail pharmacies responsible. I will continue to ensure that resources Illinois receives through settlements are distributed equitably throughout the state to help fund services needed to mitigate the ongoing opioid crisis.”

A CVS spokesperson said in an email to Patch that the company had agreed in principal last month to pay out approximately $5 billion as part of the settlement. As part of the deal, $4.9 billion to states and political subdivisions and approximately $130 million will be paid out to tribes.

“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, Chief Policy Officer and General Counsel, CVS Health said in a news release. “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.”

In a separate statement issued last month, Walgreens said it will be paying out $4.95 billion over the next 15 years and said that as part of the settlement, the company acknowledges no wrong-doing in the matter.

“As one of the largest pharmacy chains in the nation, we remain committed to being a part of the solution, and this settlement framework will allow us to keep our focus on the health and wellbeing of our customers and patients, while making positive contributions to address the opioid crisis, the Walgreens statement reads.

"We believe this is in the best interest of the company and our stakeholders at this time, and allows our pharmacists, dedicated healthcare professionals who live and work in the communities they serve, to continue playing a critical role in providing education and resources to help combat opioid misuse and abuse.”

Raoul said the settlement also includes broad, court-ordered requirements, such as the implementation of a robust Controlled Substance Compliance Program. The program will require independent pharmacist review of prescriptions, additional oversight of controlled substance dispensing, mandatory training and new reporting requirements, the release said.

Once the settlement goes into effect, funds to Illinois will be allocated according to the Illinois Opioid Allocation Agreement that Raoul previously reached with state’s attorneys.

The settlement with Walgreens and CVS is the latest of Attorney General Raoul’s ongoing efforts to combat the opioid epidemic and hold accountable companies whose deceptive practices increased opioid prescriptions at the expense of public health. It comes after Raoul’s office reached a $3 billion national settlement with Walmart to resolve allegations the company contributed to the opioid addiction crisis by failing to appropriately oversee the dispensing of opioids.

Raoul’s office also recently announced an agreement in principle with opioid manufacturer Teva that would provide up to $4.25 billion once finalized, and an agreement in principle with former opioid maker Allergan that would require the company to pay up to $2.37 billion to participating states and local governments to assist in battling the opioid epidemic.

Last year, Raoul’s office negotiated the Illinois Opioid Allocation Agreement. The agreement is intended to ensure the approximately $760 million Illinois will receive through the historic national $26 billion opioid settlement agreement with the nation’s three major pharmaceutical distributors and Johnson & Johnson, and these additional opioid settlements, are allocated equitably, including to counties and eligible municipalities.

The majority of Illinois’ money will go to the Illinois Remediation Fund to be used for abatement programs throughout the state.