Kentucky is set to receive a settlement of $110 million stemming from a lawsuit against one of the largest grocery chains in the United States, which has been accused of contributing to the opioid crisis. On Thursday, the state’s attorney general announced that the funds would be allocated to initiatives aimed at addressing the addiction issues that have severely impacted communities within the state, contributing to some of the highest rates of overdose deaths in the country.
Attorney General Russell Coleman expressed his disappointment, stating, “This massive grocery chain that asked for our trust and our business allowed the fire of addiction to spread across the commonwealth, leaving pain and leaving so much brokenness in its aftermath.” He underscored that with Kentucky redirecting the settlement for prevention and recovery, the grocery chain has agreed to play a part in resolving the crisis.
The lawsuit, initiated by Coleman’s office in February against Kroger, based in Ohio, claimed that the chain’s pharmacies played a significant role in exacerbating the opioid epidemic. The legal complaint, filed in state court, highlighted that between 2006 and 2019, Kroger dispensed approximately 444 million opioid doses in Kentucky, representing nearly 11% of all prescription opioids sold during that period.
Most concerning to Coleman was the alleged lack of a robust internal system at Kroger for monitoring or reporting suspicious activities relating to opioid dispensing. He noted that there were no training programs for staff or guidelines set in place to prevent prescription abuse.
In response to the allegations, Kroger asserted through a public statement that it anticipates the settlement funds will be effectively utilized to combat opioid misuse. The company vehemently refuted claims regarding inadequate training and oversight, describing them as “patently false” and emphasized that it has long offered substantial training and resources to its pharmacy staff.
Kroger is among numerous pharmaceutical companies, pharmacies, and distributors facing lawsuits across the nation due to their involvement in the opioid crisis. The lawsuits typically argue that these companies falsely marketed drugs as non-addictive and failed to implement sufficient controls during distribution. During the height of the pandemic, opioid-related drugs were linked to over 80,000 deaths in the U.S. annually, with illegal fentanyl becoming the predominant cause of overdose deaths.
In Kentucky, there was a nearly 10% reduction in drug overdose deaths in 2023, indicating a second consecutive year of decline. However, state officials warn that the battle against addiction remains ongoing; they attribute improvements to a holistic strategy involving treatment, preventative measures, and law enforcement operations targeting illegal drugs. Despite the decrease in fatalities, almost 2,000 individuals in Kentucky still succumbed to drug overdoses this past year.
Kroger previously reached settlements related to the opioid crisis, agreeing to pay up to $1.2 billion to various state and local governments. Kentucky opted not to join a multi-state lawsuit, a choice Attorney General Coleman believes was beneficial as participating might have yielded just around $50 million for the state, far less than the current settlement amount.
As public lawsuits against pharmacy benefit managers emerge, they are viewed as a significant frontier in the ongoing legal battles concerning the opioid epidemic in the U.S. Coleman has taken legal action against pharmacy benefit managers like OptumRx and Express Scripts, whose role involves determining drug formulary lists and influencing where patients fill their prescriptions.
Throughout the years, Kentucky attorneys general from both major political parties, including current Governor Andy Beshear, have actively pursued legal actions against entities associated with the distribution of opioid medications.
Under the terms of the Kroger settlement, approximately $18 million will be allocated for legal fees and expenses, while the remainder is designated for opioid addiction initiatives. Notably, half of the settlement funds will be distributed directly to municipalities, with a state commission overseeing allocation of the balance to organizations actively engaged in combating addiction. Organizations can submit proposals for the next round of grant funding until January 17.
Last year, the commission allocated over $12 million to 51 Kentucky-based entities for the support of initiatives focused on prevention, treatment, and recovery.
Republican U.S. Senator Mitch McConnell has also played a pivotal role in these efforts, channeling substantial federal funding to Kentucky in an attempt to address the state’s ongoing addiction crisis.
