Grocery Giant Kroger Must Pay $42M To MI For Role In Opioid Crisis

MICHIGAN — The supermarket giant Kroger, which owns Ralphs and other prominent grocery chains, has agreed to pay Michigan $42 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 Michigan. 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.

"The opioid crisis wreaked havoc on our communities, leaving men, women, and children forever changed," Michigan Attorney General Dana Nessel said. "While this settlement cannot erase the profound impact the opioid epidemic continues to have on our state, it does represent a significant step toward holding companies accountable for the suffering they have caused. I urge every eligible municipality to register to receive these funds so this settlement can effectively reach our communities and help those most desperately in need."

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.

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.