Kroger settles for $1.37 billion with Arizona, other states for role in opioid crisis

The Arizona Attorney General's Office reached a settlement agreement in principle with Kroger for the grocery chain's role in the opioid crisis, according to a news release.

On Tuesday, the Attorney General's Office announced that Kroger was required to pay $1.37 billion to participating state and local governments across the nation.

According to the attorney general's news release, the agreement would only be applicable to states where Kroger operates, both under its own name or under the name of other subsidiaries.

In Arizona, Kroger owns Fry's and Smith's. The grocery chain also owns and operates multiple other stores in other states, including Dillons, Fred Meyer, and Ralphs.

In addition to the financial terms, a final settlement remains contingent on agreement on critical business practice changes, the news release stated.

"This agreement represents our ongoing commitment to holding the companies that created or worsened Arizona's opioid epidemic accountable," said Arizona Attorney General Kris Mayes. "These settlements will help save lives and ensure these companies do not allow anything like this to happen again."

The bipartisan negotiations, according to the news release, were led by attorneys general from North Carolina, Oregon, Tennessee, California, Colorado, Illinois and Virginia.

Kroger announced the settlement agreement on Friday, saying the decision was to settle the majority of opioid claims that had or could have been brought against them by states, subdivisions, and Native American tribes.

The grocery chain's announcement stated it would pay up to $1.2 billion to states and subdivisions and $36 million to Native American tribes in funding for abatement efforts. The payments would be made over 11 years in installments. Kroger also agreed to pay approximately $177 million for attorneys' fees and costs over the course of six years.

The amount totaled to more than $1.4 billion.

Initial payments were scheduled for December.

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Kroger said the settlement was not an admission of wrongdoing or liability by the company. The announcement said the company would continue to "vigorously defend" against any other claims and lawsuits relating to opioids that the final agreement would not resolve.

"This is an important milestone in the Company's efforts to resolve the pending opioid litigation and support abatement efforts," the company wrote. "Kroger has long served as a leader in combatting opioid abuse and remains committed to patient safety."

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