Walmart offers $3.1 billion settlement to states, tribes in opioid lawsuits

Walmart offered a tentative $3.1 billion settlement Tuesday with states, local and tribal governments over the toll of powerful prescription opioids sold at its pharmacies.

The settlement is the latest result of a long line of lawsuits filed by state and local governments across the U.S. against the drug industry over the toll of powerful prescription opioids. Attorneys general from several states accused Walmart in its lawsuit of failing to appropriately oversee the dispensing of these medications at its stores.

Walmart’s plan would have to be approved by 43 states by Dec. 15, and local governments could sign on by March 31, 2023. Each state’s allocation depends partly on how many local governments agree.

The retail giant’s announcement follows similar proposals on Nov. 2 from the two largest U.S. pharmacy chains, CVS Health and Walgreen Co., which each said they would pay about $5 billion.

Indiana state is expected to receive approximately $53 million as part of the tentative settlement, according to a news release from the Indiana Attorney General's Office. Sixteen state attorneys general, including Indiana Attorney General Todd Rokita, negotiated the settlement with Walmart alongside attorneys representing local governments.

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“The opioid crisis has devastated far too many Hoosier families,” Rokita said in a prepared statement. “We continue working aggressively to hold accountable those companies whose actions have contributed to the opioid epidemic. Further, we are committed to bringing much needed funding to fight the drug crisis in Indiana.”

The agreement also requires Walmart undergo improvements in the way its pharmacies handle opioid prescription painkillers, which are intended for patients suffering from chronic pain. New requirements will include additional oversight to prevent fraudulent prescriptions as well as a process to flag suspicious prescriptions.

"Walmart believes the settlement framework is in the best interest of all parties and will provide significant aid to communities across the country in the fight against the opioid crisis, with aid reaching state and local governments faster than any other nationwide opioid settlement to date, subject to satisfying all settlement requirements," the company said in a Tuesday statement.

Walmart has not admitted any wrongdoing.

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Iowa will receive more than $19.9 million as part of this settlement, which will be directed toward treatment and recovery services for individuals with opioid use disorder, according to a news release this week from Iowa Attorney General Tom Miller.

“My fellow attorneys general and I are holding accountable the companies that created and fueled this crisis," Miller said in a statement. "This deal with Walmart adds to the important progress we've already achieved through our settlements with opioid manufacturers and distributors. As a result, meaningful resources will help people suffering from opioid addiction get the treatment and recovery services they need, and the changes to the way pharmacies operate will ensure that this never happens again.”

The share of Walmart’s proposed settlement going to Native American tribes is $78 million, to be divided among all the federally recognized tribes, said Robins Kaplan, a law firm representing tribes.

Most of the drugmakers that produced the most opioids and the biggest drug distribution companies have already reached settlements. With the largest pharmacies now settling, it represents a shift in the opioid litigation saga. For years, the question was whether companies would be held accountable for an overdose crisis that a flood of prescription drugs helped spark.

With the crisis still raging, the focus now is on how the settlement dollars — now totaling more than $50 billion — will be used and whether they will help curtail record numbers of overdose deaths, even as prescription drugs have become a relatively small portion of the epidemic.

The opioid settlements have been crafted to ensure most of the money goes to fighting the crisis, a change after governments used funds from tobacco settlements in the 1990s for purposes unrelated to public health. State and local governments are devising spending plans now.

It's estimated the opioid crisis has caused more than 500,000 deaths nationwide over the past two decades. In recent years, many of these fatalities have involved fentanyl, a powerful synthetic opioid that has appeared in illegal drug markets throughout the U.S. at increasing rates.

Contributing: Christal Hayes, USA TODAY; Associated Press

This article originally appeared on USA TODAY NETWORK: Walmart opioid settlement: $3.1 billion to states, changes to pharmacy