The state of West Virginia has resolved two opioid claims with Walmart and CVS for $147.5 million, according to the attorney general.
The settlement resolves litigation alleging that the pharmacies failed to maintain sufficient controls against diversion as distributor and dispenser, contributing to the state's opioid oversupply.
The attorney general stated that these settlements would not bring back the lives lost due to the opioid epidemic, but they will, hopefully, give considerable assistance to those most affected by this disaster in the state. This development also prevented a costly and lengthy trial, and in the end, West Virginia will have the greatest per capita settlement results in the country fighting for our people. The settlement puts West Virginia back in first place among the nations in terms of per capita opioid settlements.
Walmart agreed to pay $65.070 million, while CVS settled for $82.5 million. The CVS contract includes 2.25% Most Favored Nation protection, which ensures that West Virginia will not be affected by a future national settlement.
According to CVS's Manager of Corporate Communications, the deal settles state and municipal opioid claims, and CVS will no longer be a defendant in the state's litigation. The arrangement calls for a $52.5 million down payment, followed by annual installments of $3 million over the following ten years, including legal expenses.
The manager even notified that putting these claims behind is in the best interest of all parties. The company's position remains that opioid prescriptions are written by doctors, not pharmacists, and that opioid medications are made and marketed by manufacturers, not pharmacies. The company will continue to defend against the lawsuits.
The two firms are taking part in a broader experiment with other major pharmacies. The Mass Litigation Panel is still hearing cases against the other pharmacy defendants, Walgreens and Kroger. The trial is set to begin on June 5. The proceeds from all opioid settlements will be divided in accordance with the West Virginia First Memorandum of Understanding.
The memorandum, announced in mid-February, is an agreement with the state on how future settlement funds would be utilized to combat the state's opioid issue. It includes a detailed plan for utilizing that money to address the significant problems generated by the influx of opioids into West Virginia. To address similar action, the attorney general recently reached a deal with Rite Aid for up to $30 million.
