Walmart reaches settlement with DOJ in opioid lawsuit

Author: Anthony Thompson, USA TODAY

Walmart has reached a settlement with the U.S. Department of Justice, ending one of the federal government's most significant lawsuits accusing a single company of contributing to the nation's opioid epidemic through its pharmacy operations.

The agreement resolves a lawsuit filed in 2020 that alleged Walmart repeatedly violated the federal Controlled Substances Act by unlawfully dispensing opioid prescriptions at pharmacies across the country. While both Walmart and the Justice Department confirmed the settlement Friday, Aug. 28 to Reuters, neither disclosed its terms. USA TODAY reached out to Walmart and the Justice Department for further comment.

When the case was filed, federal officials said Walmart could face billions of dollars in civil penalties. A joint stipulation dismissing the lawsuit was filed Thursday, Aug. 27 in federal court in Wilmington, Delaware. Walmart shares rose about 0.5% in Friday morning trading.

The lawsuit had been closely watched as one of the Justice Department's largest civil actions targeting an individual company over its alleged role in the opioid crisis.

More news: Walmart rolling out tap to pay. When will it reach your store?

DOJ, Walmart Welcome Resolution

"The department is pleased to have reached a settlement with Walmart resolving allegations that its pharmacies failed to comply with their obligations under the Controlled Substances Act in dispensing opioids and other controlled substances," a Justice Department spokesperson said in a statement to Reuters.

Walmart also said it was satisfied with the outcome.

"We are pleased to resolve this matter and will continue supporting the exceptional work our pharmacists do every day to provide outstanding patient care," Reuters reported.

Will Individuals Receive Money from the Settlement?

As of Friday, Aug. 28, there have been no announced payouts to individuals as part of the settlement. Because the agreement's terms have not been disclosed, it is unclear whether they will be made public, but neither Walmart nor the Justice Department has announced a claims or compensation process.

What the Lawsuit Alleged

The Justice Department accused the Bentonville, Arkansas-based retailer of repeatedly violating federal law beginning in 2013 by filling prescriptions for opioids and other controlled substances that prosecutors said should not have been dispensed.

The government initially alleged Walmart:

• Failed to report suspicious prescriptions to the U.S. Drug Enforcement Administration
• Ignored warning signs tied to questionable prescriptions
• Knowingly dispensed invalid prescriptions

In 2024, however, U.S. District Judge Colm Connolly narrowed the case by dismissing some of those claims while allowing the government's core allegations that Walmart knowingly dispensed invalid prescriptions to move forward. Throughout the litigation, Walmart argued federal regulators placed pharmacists in an impossible position by expecting them to second-guess prescriptions written by DEA-licensed physicians.

Part of Broader Opioid Litigation

The settlement comes four years after Walmart agreed to pay $3.1 billion to resolve thousands of lawsuits brought by state and local governments over its pharmacies' role in the opioid crisis. CVS and Walgreens also reached multibillion-dollar settlements over similar claims.

Other companies have also faced major opioid litigation, including Purdue Pharma, which pleaded guilty to criminal charges in 2020 involving OxyContin, and drug wholesalers.