State Attorneys General Secure Multibillion-Dollar Settlement from CVS
In a landmark move, the Office of the Attorney General (OAG) has secured a multistate settlement of $5 billion with CVS over the pharmaceutical company’s role in the nationwide opioid epidemic. The state of Texas stands to receive over $300 million of this sum, marking a significant stride in holding pharmaceutical companies accountable for their part in escalating the crisis of opioid abuse in the United States.
The settlement with CVS is part of a broader wave of multi-billion-dollar resolutions stemming from litigation pursued by state attorneys general against the pharmaceutical industry. These lawsuits have pinpointed certain industry practices as key contributors to a national crisis defined by widespread misuse of prescription narcotics, resulting in numerous fatalities.
The agreement with CVS is characterized by an inclusive and cooperative approach, involving the State of Texas and the Texas Political Subdivisions. These subdivisions include both city governments and county governments involved in the Texas Opioids Multidistrict Litigation. The involved parties have the choice of joining either the overarching CVS Master Global Settlement Agreement or the dedicated Texas Settlement with CVS.
The OAG is inviting further Political Subdivisions in Texas to join the agreements. This call to action stems from the importance of their participation in ensuring the maximum possible funds under the settlement terms can be received by Texas. The participating cities and counties are entitled to direct payments and potential grant money for opioid abatement funding from the Texas Opioid Council. For information on how to participate, Texas cities and counties are directed to the OAG’s opioid settlement webpage.
This settlement follows on the heels of another significant victory in May 2023, when the Texas Attorney General secured $340 million from Walgreens over its role in the opioid epidemic. The agreement with CVS further underscores the OAG’s commitment to holding the pharmaceutical industry to account for its practices that have had catastrophic effects on Texas communities.
CVS’s financial obligation to Texas taxpayers and government entities will be disbursed over a ten-year period. The deadline for all Texas Political Subdivisions to join and benefit from the settlement is July 31. The settlement in principle was initially announced by the OAG in November 2022, marking the start of a new phase in the fight against the opioid crisis.
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