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SAN FRANCISCO — San Francisco City Attorney David Chiu announced Wednesday that he has reached a nearly $230 million settlement agreement with Walgreens following the City’s win in federal court against the pharmacy chain and opioid distributor. Under the agreement, Walgreens will pay $229,610,000 over the course of 14 years, with the vast majority coming in the first eight years. Settlement funds will go towards addressing the opioid crisis in San Francisco.
This settlement stems from landmark litigation San Francisco brought in 2018 on behalf of the People of the State of California against the opioid industry for fueling the opioid epidemic. San Francisco sued multiple opioid manufacturers, distributors, and dispensers, but by the end of the liability trial in 2022, all defendants except Walgreens had settled.
The pharmacy giant will pay $229.6 million to the city over the next 14 years, Chiu said in a press release, with the majority of this payment coming in the first eight years. The funds will be used to assist with the city’s drug addiction problems.
Chiu noted that cities like San Francisco “have shouldered much of the burden of the opioid epidemic.” He added that the settlement “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.”
In a statement, Walgreens said the company “never manufactured or marketed opioids, nor did we distribute them to ‘pill mills’ and internet pharmacies. The settlement allows us to focus on our mission of reimagining healthcare and wellbeing. . . . Our thoughts are with those impacted by this tragic crisis.”
