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AG Nessel Announces $1.2 Billion Settlement with Kroger for Role in Opioid Epidemic, Calls on Local Units to Participate

LANSING – Michigan Attorney General Dana Nessel is encouraging municipalities to join a $1.2 billion national settlement with Kroger to resolve allegations that the company contributed to the opioid epidemic. Michigan governments will receive nearly $42 million from the settlement over 11 years to help address the opioid crisis.

“The opioid crisis wreaked havoc on our communities, leaving men, women, and children forever changed,” Nessel said. “While this settlement cannot erase the profound impact the opioid epidemic continues to have on our state, it does represent a significant step toward holding companies accountable for the suffering they have caused. I urge every eligible municipality to register to receive these funds so this settlement can effectively reach our communities and help those most desperately in need.”

The deadline for local governments and counties to register to receive funds from the Kroger settlement is Monday, Aug. 12th. The settlement allows eligible local units of government in Michigan, referred to as subdivisions in the settlement agreement, to participate. If there is sufficient local government joinder, the agreement should become effective by early fall.

According to the Michigan Department of Health and Human Services, between the years 2000 and 2020, the opioid death rate in Michigan increased an average of 13.9% each year. These deaths—and the impacts on thousands who have struggled with opioid addiction—have created considerable costs for our health care, child welfare, and criminal justice systems. More significant than the dollars and cents in damage to our state, the impact of opioid addiction, substance use, and overdose deaths has torn families apart, damaged relationships, and devastated communities.

Since taking office in 2019, the Attorney General, who recently launched a website dedicated to opioid settlement distributions, has focused intently on combatting the opioid epidemic and holding accountable those responsible for creating and fueling the crisis. This effort resulted in over $1.6 billion to Michigan governments through settlements with Publicis, McKinsey & Co, Distributors (Cardinal Health, McKesson, Inc., and AmerisourceBergen), Janssen Pharmaceuticals, Teva Pharmaceutical, Allergan Pharmaceutical, CVS, Walmart, and Walgreens. Funds are distributed to the state and local units of government for opioid-use disorder treatment and remediation. The website includes an updated Opioid Settlement Payment Estimator worksheet that now includes estimates from the Kroger settlement.

 

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