Kroger Agrees to Pay $1.37 Billion in Opioid Crisis Settlement
SALEM, Ore. – Grocery chain Kroger has reached an agreement in principle to pay a total of $1.37 billion to participating state and local governments for their role as a dispenser of opioids in the ongoing crisis. Oregon Attorney General Ellen Rosenblum announced the agreement on Saturday, stating that Oregon will receive approximately $40 million from the settlement.
Kroger, which owns Fred Meyer and QFC stores in Oregon, has been implicated in contributing to the opioid crisis. The settlement aims to hold opioid manufacturers, distributors, dispensers, and consultants accountable for their actions. Rosenblum, who was a leader in the negotiations, emphasized the responsibility of these entities to pay for the devastating consequences of their reckless behavior.
While the settlement has yet to be concluded, Rosenblum noted that a number of issues and terms still need to be resolved in the coming months. In addition to financial terms, agreement on critical business practice changes is necessary for a final settlement.
The agreement, once finalized, will be applicable to the 36 states in which Kroger operates, including subsidiaries and brands such as Dillons, Smith’s Food and Drug, Ralphs, and King Soopers. The breadth of Kroger’s operations underscores the significant impact this settlement could have on the opioid crisis nationwide.
In Oregon, the settlement funds will be managed by the Opioid Settlement Prevention, Treatment, and Recovery Board, established by the state legislature in 2022. The board, administered by the Oregon Health Authority, will distribute 45% of the funds to address substance use disorder and invest in evidence-based programs. The remaining 55% will go directly to Oregon cities and counties for substance use disorder initiatives.
This settlement marks another major achievement for the Oregon Department of Justice in their efforts to combat the opioid crisis. Over the past two years, the department has been involved in nine multi-state agreements, securing billions of dollars nationally and over $700 million for Oregon’s opioid abatement and recovery efforts.
Oregon’s attorney general led the negotiations alongside attorneys general from California, Colorado, Illinois, North Carolina, Tennessee, and Virginia. The collaboration between these states highlights the shared determination to address the opioid crisis and seek justice for those affected.
Although the settlement is a step in the right direction, it will take time to rebuild the trust that was lost due to the actions of companies like Kroger. However, this agreement represents a significant first step towards holding those responsible accountable and providing much-needed resources to support recovery efforts nationwide.