On Dec. 12, New York Attorney General Letitia James announced two multistate settlements totaling $10.7 billion with CVS and Walgreens for the pharmacies’ role in the opioid crisis in the United States. Attorney General James co-led a coalition of attorneys general in negotiating the settlement, which will provide $10.7 billion to communities nationwide and will require significant improvements in how CVS and Walgreens handle opioids prescriptions. CVS will pay $5 billion, and Walgreens will pay $5.7 billion. The state attorneys general on the executive committee, CVS, and Walgreens have agreed to this settlement, which will now be sent to other states for review and approval. New York will receive up to $458,210,563.35 as part of the settlement, bringing the total amount secured by Attorney General James to combat the opioid crisis in New York to more than $2.5 billion.
“In New York and across the nation, communities continue to mourn family, friends, and loved ones lost to the opioid crisis,” said Attorney General James. “Though we cannot reverse the devastation, my fellow attorneys general and I are committed to holding those who allowed this epidemic to run rampant through our country to account. We have now recovered $2.5 billion for New York from opioids manufacturers and distributors, and with those funds we will continue to support and expand abatement, treatment, and prevention efforts statewide.”
In addition to securing $10.7 billion to be divided among sign-on states, local governments, and tribes for opioid treatment, recovery, and abatement, the settlement announced today will include broad, court-ordered requirements CVS and Walgreens must comply with, including robust oversight to identify and prevent fraudulent or suspicious prescriptions.
The terms of the agreement will now be sent to the states for review. Each state will have until the end of 2022 to sign on, after which local governments nationwide will be able to join the deal in the first quarter of 2023. Further details regarding how the money will be distributed among localities is forthcoming.
Under the agreement, the payments are structured to ensure critical support in early years and sustained resources over time. Payments from CVS will be spread out over a period of 10 years, and payments from Walgreens will be spread out over a period of 15 years. Payments are expected to commence in the second half of 2023.
Joining Attorney General James in leading the executive committee that negotiated this agreement are the attorneys general of California, Colorado, Connecticut, Delaware, Illinois, Indiana, Iowa, Kentucky, Louisiana, Massachusetts, Nebraska, North Carolina, Ohio, Pennsylvania, Rhode Island, Tennessee, and Texas.
