CHARLESTON — West Virginia Attorney General Patrick Morrisey has announced a $68 million settlement has been reached with Kroger, marking the end of all current opioid litigation involving the state.
Morrisey announced the settlement during a May 4 press conference. The state’s lawsuit against Kroger alleged the pharmacy chain failed to maintain effective controls against diversion as a distributor and dispenser. The complaint said those actions led to an oversupply of opioids in the state.
Kroger was the last remaining defendant in the suit. Walgreens, Walmart, CVS and Rite Aid already had settled, respectively, for $83 million, $65 million, $82.5 million and $30 million.
“Let this be a warning to others: We fight hard for those affected the most by the opioid epidemic and will stop at nothing in getting justice for them,” Morrisey said Thursday. “West Virginia remains on top in settlement dollars per capita.
“And although the hundreds of millions of dollars we secured from these companies will not bring back the lives lost from the opioid menace, our hope is that the money would provide significant help to those affected the most by this crisis in the state.”
According to terms of the settlement, Kroger would pay $34 million upfront, $12 million on June 30, 2024, another $12 million on June 30, 2025, and then lower additional payments over the next seven years to reach the $68 million total.
The settlement also includes a 2.94 percent Most Favored Nation protection, meaning the state won’t be prejudiced by any future national settlement.
Kroger’s settlement still must be approved by the counties and municipalities. If it is, the trial scheduled for June 5 will be canceled.
“Getting justice from those responsible for the opioid epidemic in the state has always been my top priority as your Attorney General,” Morrisey said. “So many lives have been lost and so many families have been shattered by this epidemic.”
The money from all opioid settlements will be distributed under the terms of the West Virginia First Memorandum of Understanding which allows for the creation of the West Virginia First Foundation, which will distribute funds for abatement purposes.
Morrisey says that is important now.
“The level of fentanyl coming into our state is off the charts,” he said. “West Virginia needs to do more today to stop the death. It’s completely unacceptable to me that fentanyl is the No. 1 cause of drug deaths in West Virginia.”
The Foundations will receive 72.5 percent of the settlement money while 24.5 percent will go to local governments. The remaining 3 percent will be held in escrow by the state.
“This all means the money won’t be going down a black hole,” Morrisey said Thursday. “This is an opportunity to begin the healing.
“By no means is this the end of our journey. We will continue fighting this scourge, no matter the stakes. We still have a lot to do, but it is a big day.”