$123 Million Settlement Deal Reached
Walmart announced on Friday that it has reached a proposed settlement agreement in response to three shareholder lawsuits related to its handling of prescription opioids. The lawsuits, filed on behalf of the company, accused Walmart’s current and former executives of failing to properly oversee the distribution and dispensing of opioid painkillers.
Under the terms of the settlement, Walmart’s insurance carriers will pay the company $123 million, excluding legal fees and court-awarded expenses for the plaintiffs’ counsel. The settlement, which does not include any admission of liability by Walmart, is still subject to court approval.
Shareholders Sued Over Fiduciary Duties
The lawsuits, filed in the Delaware Court of Chancery by three Walmart shareholders, claimed that the company’s directors and officers breached their fiduciary duties. The shareholders alleged that the company failed to sufficiently manage the risks associated with its role in distributing and dispensing prescription opioids, leading to the lawsuits.
As part of the settlement, Walmart will implement and maintain certain corporate governance practices for at least five years, according to a regulatory filing disclosed by the company.
Walmart’s Larger Opioid Settlements
This is not the first time Walmart has been involved in legal settlements over opioids. In 2022, the company agreed to pay $3.1 billion to settle lawsuits across the United States over the impact of opioid prescriptions filled at its pharmacies. The national opioid crisis, fueled in part by the widespread availability of prescription opioids, has led to thousands of lawsuits against pharmacies, manufacturers, and distributors.
Corporate Governance Reforms
The settlement also includes measures aimed at improving Walmart’s oversight of its prescription opioid-related activities. While Walmart continues to deny any liability, the agreed-upon corporate governance reforms will remain in place for at least five years, signaling a shift toward tighter internal control over how it handles prescription medications moving forward.
