San Francisco recently reached a nearly $230 million settlement with Walgreens Boots Alliance Inc over its alleged role in the opioid epidemic. San Francisco sued multiple opioid manufacturers, distributors, and dispensers in 2018 alleging that they fueled the opioid epidemic. All defendants except Walgreens settled before the end of the liability trial in 2022.
After the several months-long liability trial, United States District Judge Charles Breyer found Walgreens to be liable for “substantially contributing” to an opioid epidemic that created a public nuisance and resulted in “widespread harm” in San Francisco. In his decision, Breyer said Walgreens engaged in a “fifteen-year failure” to properly examine opioid prescriptions and flag any potential misuse of the highly addictive drugs, dispensing “hundreds of thousands of red flag opioid prescriptions without performing adequate due diligence.” These actions “made the opioid epidemic in San Francisco worse than it otherwise would have been.”
Judge Breyer’s opinion only covered liability and a subsequent trial was set to be held to determine the extent to which Walgreens “must abate the public nuisance that it helped to create.” Instead of starting the remedy phase of the litigation, both parties requested a continuance based on “productive settlement negotiations.”
Under the terms of the settlement, Walgreens will pay $229,610,000 over the course of 14 years, with the bulk of the payments coming in the first eight years. The settlement funds will go towards addressing the opioid crisis in San Francisco.
Walgreens did not admit fault and “disputed liability” but noted that the settlement would allow it to focus on its patients, customers, and communities, saying “our thoughts are with those impacted by this tragic crisis.”
“Opioids have wreaked havoc across our nation leading to immense suffering and untold damage,” said San Francisco City Attorney David Chiu. “Cities like San Francisco have shouldered much of the burden of the opioid epidemic. Thousands of attorneys, public health officials, and advocates have spent nearly two decades trying to hold the opioid industry accountable for creating this public health crisis. I am proud our office was able to prove in court that the opioid industry perpetuated this problem. Following our win against Walgreens during the liability phase, this historic agreement ensures Walgreens is held accountable for the crisis they fueled and our City receives appropriate resources to combat the opioid crisis and bring relief to our communities.”
Other Settlements
The City of San Francisco has secured other multimillion dollar settlements with opioid manufacturers, distributors, and dispensers. For example, Allergan and Teva settled for $54 million, CVS for about $11 million, and $6 million from Walmart. San Francisco is also expecting to receive funding from the bankruptcy estates of Mallinckrodt Pharmaceuticals, Purdue Pharma, and the Sackler family.
Walgreens also has somewhat of a pattern of bearing the brunt of the settlement amount. Walgreens reached a $683 million settlement with Florida, representing more than ¾ of the $878 million that four other companies agreed to pay in earlier similar settlements.