Kroger Co. has reached a $1.2 billion settlement deal for improper opioid monitoring, and the City of Buckeye will received a percentage of that restitution.
Buckeye joins $1.2 billion settlement agreement
City council unanimously approved participation in the lawsuit settlement August 6. The fund received will go to programs directly addressing the opioid crisis, according to a statement by the city.
Nearly 4,000 federal and state lawsuits have been filed against companies like Kroger Co. for “playing a role in the opioid crisis,” according to the Arizona Attorney General’s office. In August of 2021, 90 cities and towns in 15 Arizona counties — including Buckeye — signed the One Arizona Memorandum of Understanding, also known as the One Arizona Plan, which would distribute funds from those lawsuits throughout eligible areas of the state.
In 2021, pharmaceutical distributors Cardinal, McKesson and Amerisource Bergen along with manufacturer Johnson & Johnson were part of a $26 billion national settlement proposal which would bring $549 million to Arizona over the course of 18 years.
The City of Buckeye has participated in the development and implementation of One Arizona since 2020, “working with state and local governments to negotiate settlements with key pharmaceutical companies,” according to the city’s statement.
Arizona’s involvement in national opioid lawsuits
On Sept. 12, 2023, Arizona Attorney General Kris Mayes announced that his office reached a principal agreement with Kroger resulting in the corporation paying $1.37 billion to participating governments “for its role in the opioid crisis.”
“This agreement represents our ongoing commitment to holding the companies that created or worsened Arizona’s opioid epidemic accountable,” said Attorney General Mayes. “These settlements will help save lives and ensure these companies do not allow anything like this to happen again.”
In September of 2023, Kroger announced it would pay $1.2 billion in claim settlements total to states, local governments and Native American tribes with legal fees mounting to $177 million paid over six years. According to reporting by the New York Times, Kroger was accused of “improperly monitoring prescriptions of highly addictive painkillers filled in its store pharmacies.” In the NYT article, Kroger did not admit wrongdoing despite the settlement.
The State of Arizona elected to participate in the Kroger Settlement with the City of Buckeye being an eligible political subdivision. At the August 6 city council meeting, councilmembers approved to opt-into the settlement.
Kroger’s settlement: Implications for arizona communities
“Allocation amounts set forth in the One Arizona Agreement are based on population and relative degree of harm suffered in the community as a result of the opioid epidemic,” reads the Maricopa County website.
The Maricopa County Department of Public Health is the lead agency disbursing funds to municipalities such as Buckeye. According to MCDPH’s website, the county will retain nearly 52% of the funds with the remaining approximate 48% distributed to municipalities. As of June 28, 2024, the county has received nearly $60 million in YTD settlement allocations, with nearly $31 billion being retained by the county and $29 million going to cities and towns and nearly $6 million going toward current county and community-based projects.
The funds retained by the county includes $10 million to be paid through fiscal year 2028 for more community-based projects in addition to $2.6 million go to substance use treatment programs in jails through Correctional Health Services. The county allocated $850 thousand to naloxone distribution and $270 thousand for public health substance use staffing support and training in fiscal year 2024. Learn more about how the funds are distributed HERE on the county’s website.
Buckeye’s share: Expected $5.5 million from settlement
According to Exhibit C of the agreement, Buckeye is slated to receive jut under a half-percent of the total payment. This could amount to approximately $5.5 million.
The program and funding disbursement was previously handled by the city’s human resources director, Cindy Camarata. However, Public Information Officer John O’Halloran said Camarata is passing the project to another undetermined person. O’Halloran said, because the project is being passed to different city personnel, that there have not been conversations regarding where the funding will go as of now.
