Baltimore Reaches New Opioid Settlement with Walgreens, Secures $402.5 Million Ahead of Trial

Baltimore announced on Tuesday that it has reached a settlement with Walgreens over allegations that the pharmacy chain contributed to the city's opioid crisis. This marks the latest in a series of settlements that total $402.5 million, as the city prepares for a major trial next week.

The announcement followed an $80 million settlement with drug manufacturer Teva Pharmaceutical, made public the day before. While Baltimore did not disclose the specific terms of the Walgreens settlement, the cumulative figure suggests that Walgreens also agreed to an $80 million payout.

Baltimore Mayor Brandon Scott commented on the outcome, stating, "We are proud of our efforts to bring these companies to justice over the past several years."

Walgreens, while maintaining its innocence, said in a statement that the settlement was in "the best interests of all our stakeholders."

Next week’s trial will continue against other major defendants, including Johnson & Johnson, McKesson, and Cencora. Johnson & Johnson released a statement saying they intend to fight the city’s claims, asserting that they acted responsibly in manufacturing prescription pain medications.

Earlier this year, Baltimore also reached settlements with drugmaker AbbVie’s Allergan unit, CVS, and Cardinal Health. The city has accused opioid manufacturers of downplaying the drugs' addiction risks and blamed pharmacies and distributors for failing to prevent the illegal diversion of opioid pills.

Baltimore opted out of joining nationwide settlements, which have amounted to around $46 billion, in order to recover more compensation. For example, under a multi-state settlement with Teva, the city would have received only $11 million over 13 years.

Since 1999, more than 800,000 people in the United States have died from opioid overdoses, according to the U.S. Centers for Disease Control and Prevention.

Source: Reuters