Ohio judge orders CVS, Walgreens, and Walmart to pay $650M over opioid case

• CVS, Walgreens, and Walmart have been found responsible for contributing to the opioid epidemic in two counties in Ohio.
• The federal judge ordered the pharmacy chains to pay a combined $650.6 million over 15 years.
• The pharmacies are still expected to appeal.

U.S. District Judge Dan Polster in Cleveland ordered pharmacy operators CVS (CVS.N), Walgreens (WBA.O), and Walmart (WMT.N) to pay a combined $650.6 million to two Ohio counties for damages caused by the opioid epidemic.

Wednesday’s ruling marks the first time that pharmacy chains were ordered to pay damages in an opioid case. The issue follows the jury’s November conclusion that the companies’ over-supply of addictive pain pills contributed to a public nuisance in Lake and Trumbull counties, where the surplus made it to the black market.

Trumbull County Commissioner Frank Fuda said that the fine will help “to properly address the harms caused by this devastating epidemic.”

Polster ordered the sum to be paid over 15 years, but with the first two years’ total, $86.7 million, to be paid immediately. He also ordered the implementation of new procedures to counter illegal diversion of their supply.

An appeal is still expected from the pharmacies, which have argued against any liability when filling legal prescriptions from doctors. Both CVS and Walgreens representatives expressed plans to appeal, arguing that the ruling was not supported by the law. Walmart has yet to issue a statement.

Government data reveals that the opioid epidemic in the U.S. has led to over 500,000 overdose deaths in the span of two decades. Over 3,300 lawsuits, mostly by local governments, have been filed against drug manufacturers, distributors, and pharmacy chains for fueling the crisis.

There have been several nationwide settlements, including $26 billion from Johnson & Johnson and its three leading distributors, $2.37 billion from AbbVie Inc, and $4.25 billion from Teva Pharmaceutical Industries Ltd.

There is yet to be a nationwide settlement for pharmacies. CVS and Walgreens settled with Florida for $484 million and $683 million, respectively.

Another opioid lawsuit, this time in San Francisco, found Walgreens liable last week. The amount to be paid is yet to be determined.

Source: Reuters