CVS Health Co. (CVS) and Walgreens Co. (Walgreens), a subsidiary of its parent company Walgreens Boots Alliance, Inc., Wednesday, announced that each company reached a preliminary settlement deal totaling approximately $10 billion in order to end thousands of lawsuits related to ongoing opioid-related litigation.

As part of its settlement, beginning in 2023, CVS will pay a total of approximately $5 billion, allocating “$4.9 billion to states and political subdivisions and approximately $130 million to tribes” over the next ten years. Walgreens will pay “approximately $4.95 billion in remediation payments” over the next 15 years to “participating states, subdivisions and tribes[.]” Since the settlements are subject to contingencies, both companies’ reports state that they will continue to actively defend themselves against litigation.

Both CVS and Walgreens released statements, in addition to their US Securities and Exchange Commission (SEC) reports, detailing each company’s action and committal over the years to aid in fighting the opioid crisis.

CVS’s Chief Policy Officer and General Counsel, Thomas Moriarty, stated that:

We are pleased to resolve these longstanding claims and putting them behind us is in the best interest of all parties, as well as our customers, colleagues and shareholders. We are committed to working with states, municipalities and tribes, and will continue our own important initiatives to help reduce the illegitimate use of prescription opioids.

Walgreens released the following statement:

As one of the largest pharmacy chains in the nation, we remain committed to being a part of the solution, and this settlement framework will allow us to keep our focus on the health and well-being of our customers and patients, while making positive contributions to address the opioid crisis. We believe this is in the best interest of the company and our stakeholders at this time, and allows our pharmacists, dedicated healthcare professionals who live and work in the communities they serve, to continue playing a critical role in providing education and resources to help combat opioid misuse and abuse.

Walgreens’ settlement occurs following a US District Judge’s ruling in August 2022 that Walgreens contributed to and is liable for San Francisco’s opioid epidemic. Additionally, Walgreens reached a $683 million settlement in Florida in May 2022 where it was accused of contributing to Florida’s opioid epidemic.