This settlement is part of a broader $1.37 billion agreement involving multiple states, aimed at holding Kroger accountable for alleged contributions to opioid misuse through its pharmacy services.
Opioid crisis settlement
The settlement with Kroger stems from allegations that the company’s pharmacies contributed to the widespread misuse of opioid medications by failing to monitor and report suspicious opioid prescriptions adequately. California Attorney General Rob Bonta emphasized the importance of accountability, asserting that corporations contributing to the opioid epidemic must be held responsible to mitigate the harm done to communities. Bonta expressed that the settlement is a step toward healing communities and addressing the multifaceted opioid crisis, which has led to thousands of overdose deaths nationwide.
Kroger’s agreement to pay $1.37 billion across various states includes provisions for nearly $1.2 billion allocated to state and local governments and $36 million designated to Native American tribes. Funds will support opioid abatement, treatment, and recovery initiatives. In addition, the company will cover approximately $177 million in attorneys’ fees and court costs. “At the California Department of Justice, we are committed to holding entities, like Kroger, accountable for their role in fueling the opioid epidemic,” Atty. Gen. Rob Bonta announced in a news release on Monday.
Who will benefit from the settlement?
State and Local Government programs
The bulk of the $1.37 billion settlement will be directed toward state and local governments, which will implement and expand opioid abatement and recovery programs. California’s $122 million portion will support a variety of initiatives aimed at curbing opioid addiction, including drug prevention, harm reduction, treatment, and recovery services. These funds will be administered through California’s public health departments, ensuring that communities disproportionately affected by the crisis receive the help they need. Rob Bonta and other officials have highlighted the critical nature of these programs to protect public health and aid in recovery efforts.
Native American communities
In a unique aspect of the settlement, $36 million has been earmarked specifically for Native American tribes. These communities have experienced severe impacts from the opioid epidemic, and the funds will be dedicated to culturally appropriate treatment and prevention programs. Tribal governments will use the resources to strengthen their health services, which often struggle with limited resources and face challenges in addressing substance abuse within their communities.
Impact on Kroger’s operations
In addition to financial penalties, the settlement mandates operational changes at Kroger pharmacies. Under the agreement, Kroger is required to enhance its monitoring and reporting of opioid prescriptions to prevent misuse. This step aligns Kroger with new industry standards intended to detect and flag suspicious activity around opioid dispensing, thereby reducing the risk of contributing to future addiction issues.
A Kroger spokesperson stated, “Kroger will continue to combat opioid abuse and remains focused on providing fresh and affordable groceries to communities across the country,” emphasizing the company’s commitment to preventing opioid misuse while maintaining its core business operations.
