Three major national drugstore chains, CVS, Walmart, and Walgreens, are set to pay over $56 million in the final round of legal settlements with the state of Rhode Island over allegations of flooding communities with addictive opioid painkillers.
The settlement amounts, expected to be received by Rhode Island starting in early 2024 and continuing through 2037, were announced by the state attorney general. Walgreens will pay approximately $23.1 million, CVS $21.5 million, and Walmart $11.9 million.
Rhode Island's per capita opioid sales from 2006 to 2014 were reported to be significantly higher than the national average, leading to the state's legal action against the pharmacies. The state's attorney general stated that these national pharmacies prioritized profits over the well-being of Rhode Islanders and Americans.
CVS, Walgreens, and Walmart were identified as dominant buyers of opioids in Rhode Island from 2006 to 2019, with CVS being the largest buyer from 2016 to 2014, holding a 46% market share and purchasing over 148 million dosage units during that period.
Data provided by the state attorney general's office indicated that certain CVS and Walgreens branches dispensed alarming quantities of prescription opioids relative to the size of their communities. For instance, an East Providence CVS purchased over 800,000 dosage units in 2014 in a community of under 48,000 people. A CVS location in North Smithfield in 2012 purchased enough dosage units to supply 80 units to every resident of the town.
In addition to the financial settlement, the state attorney general's office highlighted that the funds will be distributed, with 80% going to the state and 20% directly to Rhode Island's cities and towns, in accordance with an agreement governing opioid settlement funds.
Rhode Island has already received over $250 million in settlement cash from opioid manufacturers, distributors, and sellers, including more than $40 million designated for cities and towns. The settlement funds, intended for opioid treatment, prevention, and recovery efforts, will be directed to Rhode Island's Statewide Opioid Abatement Fund, managed by the state Executive Office of Health and Human Services with guidance from the state Opioid Settlement Advisory Committee.
The attorney general's office emphasized that while no amount of money can fully undo the harm caused by the opioid crisis, the settlements provide crucial resources for treatment, prevention, and recovery efforts. The state is already utilizing settlement funds to expand in-patient treatment capacity for individuals with opioid use disorder, demonstrating the practical impact of the allocated resources.
