Utah Office of Attorney General

11/04/2024 | Press release | Distributed by Public on 11/04/2024 14:13

AG Reyes and a Bipartisan Coalition of States Announce a Settlement with Kroger for $1.37 Billion

Utah Surpasses Half Billion in Opioid Settlement Dollars with Approximately $45 Million from Kroger Case

November 4, 2024

SALT LAKE CITY-Utah Attorney General Sean D. Reyes, alongside a bipartisan coalition of 30 state attorneys general, announced today the completion of the $1.37 billion settlement agreement with Kroger, which addresses the grocery chain's role in the opioid crisis. Utah will receive approximately $45 million for opioid abatement, with payments anticipated to begin early next year. Kroger does business in Utah as Smith's Food and Drug.

"It is my duty and honor as Utah's Attorney General to defend our communities against countless threats, including the death and carnage wrought by the misuse of opioids. This recovery, combined with others the Utah AG's Office has helped lead across America, now exceeds $500 million in settlement funds. These dollars will help liberate many caught in the cycle of addiction and prevent another generation of Utahns from ever becoming dependent on opioids in the first place," said Attorney General Reyes.

"I want to recognize the leadership of Chief Deputy Spencer Austin and the excellent lawyering and hard work over many years by AG attorneys like Kevin McClean, Michael Gadd, Pieshen Zhou, Carina Wells, Director Douglas Crapo, and others. With the support of their paralegals and staff, they put Utah at the forefront of this national case against Kroger."

AG Reyes concludes, "I am very proud that our AG team once again led with bold litigation to benefit all of America but most importantly to protect so many Utah families affected by this tragic crisis. We will be able to use these funds like our other opioid settlements to protect and assist Utahns-many of whom are our friends, family members, and neighbors."

Utah Attorney General Reyes filed suit in state court in 2022, alleging Kroger was the largest pharmacy buyer and dispenser of opioids in Utah from 2006 to 2014.  Kroger purchased and distributed or dispensed more than 140 million dosage units of oxycodone and hydrocodone during that time frame alone, accounting for more than 15% of the statewide volume of those specific drugs.  A store in Price, for example-a city with roughly 8,000 people-bought enough oxycodone and hydrocodone over seven years to supply 71 pills to each person in the community.

Despite this massive volume of opioids distributed in Utah, the State alleged that Kroger implemented policies that awarded pharmacists with bonuses and other perks based on the number and speed of prescriptions filled, including prescriptions for controlled substances.

"This is a great result for Utah and our AG team as we press forward on the front lines against those who contributed to the plight our communities face. While our team continues its work to force those responsible to fulfill their legal and ethical obligations to the public, this settlement is an example of our efforts bearing fruit," said Douglas Crapo, Director of the AG Office Division of White Collar & Commercial Enforcement.

Over the past two years, the AG litigation team achieved a number of procedural victories in its civil case and was set to depose key national witnesses from Kroger later this year. Utah's advantageous litigation posture benefited all states in bringing pressure for a larger and more rapid settlement agreement. Utah will not dismiss its lawsuit until the settlement is finalized in a contemplated consent decree.

The Kroger case is another in a long line of successful and highly publicized national multi-state opioid lawsuits that Utah Attorney General Sean Reyes has made a top priority pursuing during his time in office.

With approval from the Utah State Legislature, opioid litigation funds are shared with counties and are spent toward initiatives surrounding Opioid Use Disorder treatment, recovery, expanded needed services, prevention, and criminal justice to increase access to recovery for individuals suffering from addiction and prevent individuals from developing an addiction to opioids in the future.