$44.5M Settlement Reached In The Food City Opioid Case

$44.5M Settlement Reached In The Food City Opioid Case

Introduction

The Tennessee Attorney General has announced a $44.5 million settlement with K-VA-T Food Stores, commonly known as Food City, in connection with their involvement in the opioid crisis.

According to the Attorney General's Office, a significant portion of this settlement will be allocated to Tennessee's Opioid Abatement Fund, which will support local initiatives aimed at addressing the opioid epidemic.

Apart from the financial settlement, Food City has also committed to ensuring future compliance by providing additional training to their pharmacy staff, updating the prescription-validation process, and closely monitoring and reporting any suspicious activities related to opioids. Additionally, the company will create dedicated employment opportunities for individuals in Tennessee who are recovering from opioid addiction.

The Attorney General emphasized the importance of holding all parties accountable for their contributions to the opioid crisis and commended the relentless efforts of the Consumer Protection Division in pursuing justice in this case. The settlement not only imposes a substantial cost on Food City for past misconduct but also provides crucial resources to save lives and protect families while allowing the company to refocus on serving its customers and supporting Tennessee communities.

K-VA-T Food Stores issued a statement in response to the settlement, stating that it concludes two opioid-related cases in Knox County and Sevier County. They emphasized that these cases are just a fraction of the many similar cases nationwide that target manufacturers, distributors, and retailers of prescription opioids. The allegations in these cases primarily pertain to events from over a decade ago, and K-VA-T has consistently denied any wrongdoing. The settlement agreement does not constitute an admission of liability or wrongdoing and is seen by the company as a mutually beneficial resolution that will contribute to opioid-related programs established through previous settlements with national retailers and distributors.

The company's statement also expressed its commitment to supporting local drug rehabilitation centers and their efforts to assist individuals in recovery and help them lead more productive lives.

In early 2021, a case was filed in the Knox County Circuit Court alleging that certain Food City pharmacies had unlawfully sold tens of millions of prescription opioids for more than a decade. At the time, Food City's CEO had stated that the lawsuit was based on false information.

Recently, Kroger reached a national agreement of $1.4 billion to be paid out over 11 years, with 33 states and some Native American tribes eligible to receive funds as part of their own settlement related to the opioid crisis.