On Wednesday, CVS Health announced that it had reached an agreement on a $5 billion settlement to “substantially resolve” the opioid claims brought against the pharmacy operator.
In a statement, Thomas Moriarty, chief policy officer and general counsel for CVS, said, “We are glad to resolve these long-standing claims, and putting them behind us is in the best interest of all parties, as well as our customers, colleagues, and shareholders.” “We will continue our own significant initiatives to assist prevent the illegal use of prescription opioids,” the statement reads. “We are dedicated to collaborating with states, towns, and tribes.”
The corporation said that the in-principle agreed-upon national settlement would end state and other governmental lawsuits. Some of those allegations go back at least ten years. According to the corporation, the settlement is not “an acknowledgment of any culpability or wrongdoing.”
In premarket trading on Wednesday, CVS Health shares increased by around 2.4% as it also announced a settlement and reported third-quarter financial data.
Depending on how many governmental entities choose to join the settlement, the compensation payments would be made over a 10-year period starting in 2023. The “non-monetary” aspects of the settlement are still being decided by the parties, according to CVS.
According to CVS, the payouts would include roughly $4.9 billion for states, cities, counties, and other political litigants. The announcement made on Wednesday stated that tribes will get about $130 million.
