Philadelphia Settles $110M Opioid Suit with Walgreens

Introduction

Walgreens, a pharmacy giant, has agreed to pay Philadelphia $110 million in a settlement concerning the city’s opioid addiction crisis.

This settlement is set to support the Kensington Community Revitalization Plan and other initiatives aimed at enhancing public health and safety, particularly in neighborhoods severely affected by the opioid crisis. The city had filed a lawsuit against Walgreens in 2021, alleging its role in fueling the epidemic.

The agreement outlines that Philadelphia will receive the funds over a five-year period, with the intention of addressing the harm inflicted by the crisis through substance use education, treatment, prevention, and community engagement efforts. Philadelphia’s City Solicitor emphasized the significance of holding entities accountable for perpetuating harm in communities and expressed hope that the settlement funds will expedite efforts to combat addiction and prevent further loss of life. The initial portion of the settlement is expected to be received in September.

Philadelphia initiated legal actions against opioid manufacturers, distributors, and pharmacies in 2017, aiming to hold them responsible for their contributions to the crisis. The establishment of the Opioid Settlement Fund in 2023 aimed to manage and distribute funds obtained from various lawsuits related to the epidemic.

Earlier, pharmacy giants CVS, Walmart, and Walgreens urged Ohio's top court to dismiss a $650.9 million judgment against them for their alleged role in fueling the opioid crisis. They argued over the Ohio law bars claims of public nuisance brought by Lake and Trumbull counties.

The lawsuit is part of broader litigation nationwide and accuses the pharmacies of exacerbating the epidemic. Although they settled other cases, CVS, Walmart, and Walgreens contested this verdict, prompting the 6th U.S. Circuit Court of Appeals to seek clarification from the Ohio Supreme Court on unresolved legal issues. The counties maintain that the law doesn't prevent them from seeking relief to address future harm.

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