CVS Health (NYSE: CVS) announced that it has agreed in principle to a financial resolution designed to substantially resolve all opioid lawsuits and claims against the company by states, political subdivisions, such as counties and cities, and tribes in the United States.
If all conditions are satisfied and the non-monetary terms – which still need to be determined – are finalized, CVS Health has agreed it will pay approximately $5 billion ($4.9 billion to states and political subdivisions and approximately $130 million to tribes) over the next ten years beginning in 2023, depending on the number of governmental entities that agree to join the settlement.
The agreement would fully resolve claims dating back a decade or more and is not an admission of any liability or wrongdoing. CVS Health will continue to defend against any litigation that the final agreement does not resolve.
“We are pleased to resolve these longstanding claims and putting them behind us is in the best interest of all parties, as well as our customers, colleagues and shareholders,” said Thomas Moriarty, Chief Policy Officer and General Counsel, CVS Health. “We are committed to working with states, municipalities and tribes, and will continue our own important initiatives to help reduce the illegitimate use of prescription opioids.”
CVS Health has undertaken numerous initiatives to fight opioid abuse, which include:
- Significant investments in technology and procedures to support its pharmacists in exercising their professional obligations.
- Innovative, comprehensive, and industry-leading policies, procedures and controls relating to the dispensing of controlled substances.
- Effective educational programs on prescription drug misuse that have reached 1.8 million teens and parents.
- Rollout of more than 4,750 safe medication disposal units in stores and local police departments across the country, which to date have collected more than 4.5 million pounds of unused medication.
- Installation of time delay safes in more than 7,650 pharmacies across 45 states and Washington, DC to help deter opioid robberies.
- Nationwide access in CVS Pharmacy locations to life-saving opioid overdose reversal medication.
