Walgreens and Philadelphia Settle Opioid Lawsuit for $110 Million

The City of Philadelphia has announced it has reached a settlement with Walgreens over a 2021 lawsuit alleging that the drug store perpetuated the opioid crisis in the Pennsylvania city. The complaint, filed by the City in September of 2021, alleged that, among other things, Walgreens a) failed to monitor, report, and abstain from shipping allegedly suspicious orders of opioid pain medications and b) dispensed opioid pain medications without confirming that the prescriptions were for a legitimate purpose.

According to the settlement document, Walgreens denied the allegations, contended that they were inaccurate, denied that any person was harmed by its conduct, and maintained that the company would defend against the City’s claims at trial successfully. Nonetheless, the company settled the claims to avoid the costs, misery, and uncertainty of litigation.

The $110,000 million settlement will be paid in five installments over the next 5 years, starting in September 2024. The City of Philadelphia anticipates using the funds for opioid remediation in the City’s most impacted areas, and specifically for substance use education, treatment, prevention, and community engagement efforts. The City anticipates that the funding from Walgreens will greatly improve its capacity to implement an opioid response strategy.

“Through this settlement, the City of Philadelphia has successfully held Walgreens accountable for oversupplying powerful drugs to people in our communities—with little consideration for the risk of addiction or harm posed by opioids,” said Mayor Cherelle L. Parker in a press release. “The $110 million in funds from this settlement will support our Kensington Community Revitalization Plan and other efforts across Philadelphia to reinforce public health and safety in neighborhoods that have been hit the hardest by the opioid crisis.”

“Through its predatory business practices, Walgreens has played a significant role in the creation and continuation of the opioid epidemic that has claimed the lives of too many Philadelphians and caused immense harm to our communities,” said Renee Garcia, City Solicitor, in a statement. “We are hopeful that these funds can be used to accelerate the City’s efforts to reduce widespread addiction and prevent further loss of life due to opioid overdose.”

The Philadelphia case is just the latest in a series across the country of states, cities, and localities suing drug manufacturers for the harm caused by opioids. Many of these cases are getting settled but it remains to be seen if this will result in an improvement in the current opioid epidemic in the country.

Reference

City of Philadelphia. City of Philadelphia announces $110 million settlement agreement in lawsuit against Walgreens. News release. Law Department, Office of the Mayor. Published April 19, 2024. Accessed May 6, 2024. https://www.phila.gov/2024-04-19-city-of-philadelphia-announces-110m-settlement-agreement-in-lawsuit-against-walgreens-2/