Supermarket giant Kroger, the parent company of Ralphs and Food4Less, has agreed to pay California up to $122 million as part of a larger $1.37 billion settlement related to the opioid crisis. This agreement, finalized on Monday, resolves allegations that Kroger failed to properly oversee opioid dispensing at its pharmacies, contributing to the ongoing public health emergency.
The settlement, reached in September 2023, involves 34 states, several Native American tribes, and thousands of local governments. California is set to receive one of the largest portions, second only to Ohio.
California Attorney General Rob Bonta commented on the settlement, stating that the funds will support comprehensive prevention, treatment, and recovery programs to address the harms caused by the opioid epidemic.
A Kroger spokesperson expressed satisfaction with the finalization of the settlement, noting that it will provide over $1.2 billion in support for opioid abatement efforts nationwide while resolving nearly all outstanding opioid-related claims against the company.
This agreement is part of a broader series of multi-state settlements involving various entities in the pharmaceutical supply chain, including drug manufacturers, wholesalers, consultants, and pharmacies.
In total, California expects to receive up to $4.2 billion from various opioid settlements, with a significant portion allocated to local governments. Attorney General Bonta has provided guidance to jurisdictions on the permissible use of these settlement funds.
Beyond financial compensation, the settlement also requires Kroger to implement injunctive relief measures. These include enhanced monitoring, reporting, and data-sharing practices related to suspicious opioid prescription activities at their pharmacies.
This settlement marks another step in ongoing efforts to hold companies accountable for their alleged roles in the opioid crisis and to provide resources for communities affected by opioid addiction.