Walgreens, a prominent drugstore chain, has reached a $230 million settlement with the city of San Francisco regarding its involvement in the city's opioid epidemic. The settlement comes after U.S. District Judge Charles Breyer ruled that Walgreens could be held liable for substantially contributing to the opioid crisis in the city, causing widespread harm and constituting a public nuisance.
Judge Breyer criticized Walgreens for its failure to adequately scrutinize opioid prescriptions over a 15-year period, neglecting to identify potential misuse of these highly addictive drugs. San Francisco City Attorney David Chiu announced the settlement, describing it as the largest awarded to a local government in years of opioid litigation nationwide. Chiu stated that Walgreens' actions exacerbated the opioid epidemic in San Francisco and that no amount of money can bring back the lives lost.
In response to the settlement, Walgreens issued a statement disputing liability and not admitting fault. The company highlighted that reaching a settlement allows them to focus on their patients, customers, and communities, expressing sympathy for those impacted by the crisis.
Walgreens was the sole remaining defendant in San Francisco's civil lawsuit, following settlements by various drug manufacturers and distributors totalling over $120 million. Judge Breyer's ruling last year revealed that Walgreens had a profit-driven culture that prioritized dispensing opioids, failing to exercise due diligence. The company's San Francisco pharmacies received over 1.2 million opioid prescriptions with red flags between 2006 and 2020, yet only conducted proper diligence on less than 5% of them.
By settling the case, Walgreens avoids a trial to determine damages. San Francisco estimated that the cost of addressing the opioid crisis could reach $8.1 billion, holding Walgreens entirely liable for the amount.
Opioids, including legal painkillers such as OxyContin and fentanyl, have caused over 600,000 deaths in the United States between 1999 and 2021, with more than 107,000 deaths in 2021 alone, according to the U.S. Centers for Disease Control and Prevention.
As of the time of this statement, Walgreens shares were trading at $31.98, experiencing a slight increase of 63 cents in the afternoon session.
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