ST. LOUIS — Multistate agreements totaling $10.7 billion have been finalized with CVS and Walgreens to resolve allegations that they failed to properly oversee the dispensing of opioids at their pharmacy stores.
Rhode Island-based CVS Health Corp. (NYSE: CVS) has agreed to pay $5 billion over 10 years, and Chicago-based Walgreens Boots Alliance Inc. (Nasdaq: WBA) agreed to pay $5.7 billion over 15 years, Illinois Attorney General Kwame Raoul said in a news release. The pharmacy giants in November agreed in principal to the settlement, and CVS at the time said it would "fully resolve" all opioid claims, some going back a decade or more.
The latest negotiations were led by the attorneys general of California, Colorado, Connecticut, Delaware, Illinois, Indiana, Iowa, Kentucky, Louisiana, Massachusetts, Nebraska, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Tennessee and Texas. The settlements follow a similar agreement with Walmart.
This week's announcement brings the national amount from opioid settlements to more than $50 billion.
As part of the agreement, CVS and Walgreens will be required to monitor, report and share data about suspicious opioid prescription activity and maintain robust compliance practices. Nearly all the funds must be used to remediate the opioid crisis, including prevention, harm reduction, treatment and recovery services.
Once the settlement goes into effect, funds to Illinois will be allocated according to an agreement Raoul previously reached with state’s attorneys.
The settlement with Walgreens and CVS 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.
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