USA — Walgreens has reached a settlement of nearly US$230 million with San Francisco after a federal judge held the company responsible for its contribution to the city’s ongoing opioid crisis.
San Francisco City Attorney David Chiu announced the settlement, stating that the funds will be directed towards the city’s opioid crisis response efforts.
Chiu expressed his satisfaction with the settlement, highlighting the significance of the agreement.
He stated, “Following our win against Walgreens during the liability phase, this historic agreement ensures Walgreens is held accountable for the crisis they fueled, and our city receives appropriate resources to combat the opioid crisis and bring relief to our communities.”
The lawsuit against Walgreens, initiated in 2018, marked the nation’s first successful bench trial involving opioid manufacturers and pharmacies, and it was the first bench trial to hold Walgreens liable.
In August, U.S. District Judge Charles Breyer ruled that the company had “substantially contributed to an opioid epidemic with far-reaching and devastating effects across San Francisco” through the “unlawful dispensing of illegitimate opioid prescriptions.”
Originally, San Francisco’s public nuisance lawsuit against Walgreens involved several other plaintiffs, most of whom have already reached settlements.
The City Attorney’s Office previously secured settlements with the following companies: Pharmaceutical company Endo for US$10 million, Opioid manufacturers Allergan and Teva for US$54 million, CVS for approximately US$11 million, Walmart for US$6 million
Additionally, settlements were reached with opioid manufacturer Johnson & Johnson, as well as distributors McKesson, Cardinal, and AmerisourceBergen, totaling US$45 million.
In addition to the settlement with Walgreens, San Francisco is also expected to receive funds from the bankruptcies of Mallinckrodt Pharmaceuticals, Purdue Pharma, and the Sackler family, according to the City Attorney’s Office.
Dr. Grant Colfax, Director of the San Francisco Department of Public Health, emphasized the importance of these funds in saving lives and providing treatment opportunities.
He stated, “San Francisco and the Department of Public Health will use these critical funds to save lives and bring people into treatment.”
The settlement agreement outlines that the funds will be disbursed over a period of 14 years, with the majority of the payments being made within the first eight years.
The settlement still requires approval from the San Francisco Board of Supervisors and Mayor London Breed, who expressed her support for the agreement.
Breed highlighted the areas where the funds will be utilized, including treatment beds, dual diagnosis beds, abstinence-based programming, and transitional housing.
Walgreens responded to the settlement with a statement, disputing liability and clarifying that the agreement does not constitute an admission of fault.
The company emphasized that it neither manufactured nor marketed opioids, nor did it distribute them.
For all the latest healthcare industry news from Africa and the World, subscribe to our NEWSLETTER, and YouTube Channel, follow us on Twitter and LinkedIn, and like us on Facebook.
