The Holbrook City Council convened Aug. 7 for a special meeting to discuss and approve participating in a national opioid settlement against Kroger Co.
In 2021, Arizona participated in national opioid settlements with Johnson & Johnson and distributors McKesson, Cardinal Health, and Amerisource Bergen. A year later in 2022, five additional defendants-Teva, Allergan, Walmart, Walgreens and CVS entered into similar settlement agreements. The settlement funds are allocated to the county, which must consult the city regarding their use, following the One Arizona Distribution of Opioid Settlement Funds Agreement.
As of March 2024, Kroger Co. has agreed to settle its opioid lawsuit contingent upon the consent judgement with the settling states, which includes the approval of the settlement agreement and the release of Kroger from all related claims. The settlement with Kroger Co. is over one billion dollars. Of this amount, it is anticipated that $68.5 million will come to Arizona for opioid remediation.
Each eligible state decides whether to participate in the settlement; the State of Arizona has elected to participate. Then, eligible subdivisions within each state decide whether to participate. The more subdivisions that participate, the more settlement funds will be available to Arizona and its subdivisions. Any subdivision that does not participate cannot directly share in any of the settlement funds.
There has been no determination on what funds the city may receive but any funds received must be used to provide opioid addiction education and services. In past settlement awards, the city has allocated those funds to Navajo County’s drug programs. If funds are awarded, the determination of where those funds will be allocated will be made at that time.
The motion to opt in to the settlement was unanimously passed and the council authorized City Manager Sharon Jakubowki Wolz to sign the authorization on behalf of the council.
