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AG Nessel announces $1.2 billion Kroger settlement over opioid crisis

LEGAL NEWSLINE

Sunday, November 24, 2024

AG Nessel announces $1.2 billion Kroger settlement over opioid crisis

State AG
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Attorney General Dana Nessel | Official website

Michigan Attorney General Dana Nessel is urging municipalities to join a $1.2 billion national settlement with Kroger to address allegations that the company contributed to the opioid epidemic. Michigan governments are set to receive nearly $42 million from the settlement over 11 years to combat the crisis.

“The opioid crisis wreaked havoc on our communities, leaving men, women, and children forever changed,” Nessel stated. “While this settlement cannot erase the profound impact the opioid epidemic continues to have on our state, it does represent a significant step toward holding companies accountable for the suffering they have caused. I urge every eligible municipality to register to receive these funds so this settlement can effectively reach our communities and help those most desperately in need.”

Local governments and counties must register by Monday, Aug. 12th, to receive funds from the Kroger settlement. The agreement allows eligible local units of government in Michigan, referred to as subdivisions in the settlement agreement, to participate. If there is sufficient local government joinder, the agreement should become effective by early fall.

The Michigan Department of Health and Human Services reports that between 2000 and 2020, the opioid death rate in Michigan increased an average of 13.9% annually. These deaths—and their impacts on thousands struggling with opioid addiction—have created considerable costs for health care, child welfare, and criminal justice systems. Beyond financial damage, opioid addiction has torn families apart and devastated communities.

Since taking office in 2019, Attorney General Nessel has focused on combating the opioid epidemic and holding accountable those responsible for fueling it. This effort has resulted in over $1.6 billion for Michigan governments through settlements with entities including Publicis, McKinsey & Co., Cardinal Health, McKesson Inc., AmerisourceBergen, Janssen Pharmaceuticals, Teva Pharmaceutical, Allergan Pharmaceutical, CVS, Walmart, and Walgreens. Funds are distributed for opioid-use disorder treatment and remediation. The Attorney General's website includes an updated Opioid Settlement Payment Estimator worksheet now featuring estimates from the Kroger settlement.

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