Walgreens Announces Agreement in Principle for Multi-State Opioid Settlement Framework

Rhea-AI Summary

Walgreens announced an agreement to settle opioid-related lawsuits for approximately $4.95 billion over 15 years. This settlement aims to resolve claims made by states, subdivisions, and tribes, without admitting liability. The company highlighted its commitment to addressing the opioid crisis through various initiatives, including patient education and availability of Naloxone. The frameworks are designed to allow Walgreens to focus on customer health and wellbeing while contributing positively to the ongoing crisis.

Positive

• Settlement of opioid claims expected to alleviate legal uncertainties and associated costs.
• Commitment to community health through ongoing patient education and the availability of Naloxone.

Negative

• Settlement amount of approximately $4.95 billion could impact cash flow over the next 15 years.

DEERFIELD, Ill.--(BUSINESS WIRE)-- Walgreens today announced it has agreed in principle to financial amounts and payment terms as part of settlement frameworks to substantially resolve opioid-related litigation.

Under these frameworks, the company expects to settle all opioid claims against it by participating states, subdivisions and tribes, for up to approximately $4.95 billion in remediation payments to be paid out over 15 years. The settlement frameworks include no admission of wrongdoing or liability by the company.

Walgreens released the following statement:

“As one of the largest pharmacy chains in the nation, we remain committed to being a part of the solution, and this settlement framework will allow us to keep our focus on the health and wellbeing of our customers and patients, while making positive contributions to address the opioid crisis. We believe this is in the best interest of the company and our stakeholders at this time, and allows our pharmacists, dedicated healthcare professionals who live and work in the communities they serve, to continue playing a critical role in providing education and resources to help combat opioid misuse and abuse.”

Walgreens has taken a number of actions over many years to respond to the opioid crisis, while continuing to serve patients, including:

• Providing ongoing patient education on safe opioid use
• Making life-saving Naloxone, the opioid overdose reversal medication, available in all Walgreens pharmacies nationwide (nearly 9,000 stores total)
• Providing safe and convenient medication disposal options at all Walgreens locations, including in-store kiosks at more than 1,400 stores
• Implementing time delay safes in nearly all Walgreens locations across the U.S. and Puerto Rico to help combat theft and drug diversion
• Deploying technology to help pharmacists ensure they are dispensing prescriptions written for a legitimate medical purpose

For further details, please see the 8-K filing.

About Walgreens

Walgreens (www.walgreens.com) is included in the United States segment of Walgreens Boots Alliance, Inc. (Nasdaq: WBA), an integrated healthcare, pharmacy and retail leader serving millions of customers and patients every day, with a 170-year heritage of caring for communities. As America’s most loved pharmacy, health and beauty company, Walgreens purpose is to champion the health and well-being of every community in America. Operating nearly 9,000 retail locations across America, Puerto Rico and the U.S. Virgin Islands, Walgreens is proud to be a neighborhood health destination serving approximately 9 million customers each day. Walgreens pharmacists play a critical role in the U.S. healthcare system by providing a wide range of pharmacy and healthcare services. To best meet the needs of customers and patients, Walgreens offers a true omnichannel experience, with fully integrated physical and digital platforms supported by the latest technology to deliver high-quality products and services in local communities nationwide.

Cautionary Note Regarding Forward-Looking Statements

All statements in this report that are not historical including, without limitation, those regarding finalization of the Settlement Frameworks and payments anticipated to be made pursuant to the Settlement Frameworks, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “will,” “likely,” “intend,” “plan,” “aim,” “continue,” “believe,” “seek,” “anticipate,” “upcoming,” “may,” “possible,” and variations of such words and similar expressions are intended to identify such forward-looking statements.

These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions, known or unknown, that could cause actual results to vary materially from those indicated or anticipated. These risks, assumptions and uncertainties include those described in Item 1A (Risk Factors) of our Annual Report on Form 10-K for the fiscal year ended August 31, 2022 and in other documents that we file or furnish with the Securities and Exchange Commission. If one or more of these risks or uncertainties materializes, or if underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. All forward-looking statements we make or that are made on our behalf are qualified by these cautionary statements. Accordingly, you should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.

We do not undertake, and expressly disclaim, any duty or obligation to update publicly any forward-looking statement after the date of this release, whether as a result of new information, future events, changes in assumptions or otherwise

View source version on businesswire.com: https://www.businesswire.com/news/home/20221102005628/en/

WBA Media Relations

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Source: Walgreens

FAQ

What settlement has Walgreens agreed to regarding opioid litigation?

Walgreens has agreed to settle opioid-related litigation for approximately $4.95 billion over 15 years.

Will Walgreens admit wrongdoing in the opioid settlement?

No, Walgreens's settlement includes no admission of wrongdoing or liability.

How will Walgreens address the opioid crisis following the settlement?

Walgreens plans to continue community health initiatives such as providing Naloxone and patient education on safe opioid use.

How many years will Walgreens pay for the opioid settlement?

The opioid settlement payments are spread over 15 years.

What is the financial impact of the Walgreens opioid settlement?

The settlement amount of $4.95 billion could significantly impact Walgreens's cash flow during the payment period.