WOONSOCKET, R.I., Nov. 2, 2022
/PRNewswire/ -- CVS Health® (NYSE: CVS) announced today that it has
agreed in principle to a financial resolution designed to
substantially resolve all opioid lawsuits and claims against the
company by states, political subdivisions, such as counties and
cities, and tribes in the United
States.
If all conditions are satisfied and the non-monetary terms –
which still need to be determined – are finalized, CVS Health has
agreed it will pay approximately $5
billion ($4.9 billion to
states and political subdivisions and approximately $130 million to tribes) over the next ten years
beginning in 2023, depending on the number of governmental entities
that agree to join the settlement.
The agreement would fully resolve claims dating back a decade or
more and is not an admission of any liability or wrongdoing. CVS
Health will continue to defend against any litigation that the
final agreement does not resolve.
"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," said Thomas Moriarty, Chief Policy Officer and
General Counsel, CVS Health. "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."
CVS Health has undertaken numerous initiatives to fight opioid
abuse, which include:
- Significant investments in technology and procedures to support
its pharmacists in exercising their professional obligations.
- Innovative, comprehensive, and industry-leading policies,
procedures and controls relating to the dispensing of controlled
substances.
- Effective educational programs on prescription drug misuse that
have reached 1.8 million teens and parents.
- Rollout of more than 4,750 safe medication disposal units in
stores and local police departments across the country, which to
date have collected more than 4.5 million pounds of unused
medication.
- Installation of time delay safes in more than 7,650 pharmacies
across 45 states and Washington,
DC to help deter opioid robberies.
- Nationwide access in CVS Pharmacy locations to life-saving
opioid overdose reversal medication.
The timing of cash settlement payments, spread over multiple
years, allows the company to continue to invest in its strategic
priorities. More information about the settlement will be
provided during the CVS Health third quarter 2022 earnings
conference call on Wednesday, November
2 at 8:00 a.m. ET.
Cautionary Statement Concerning Forward-Looking
Statements
The Private Securities Litigation Reform Act of 1995 provides a
safe harbor for forward-looking statements made by or on behalf of
CVS Health. By their nature, all forward-looking statements,
including the statements in this press release related to the scope
and coverage of the ultimate settlement and the expected financial
and other impacts that could result from the Settlement Framework,
are not guarantees of future performance or results and are subject
to risks and uncertainties that are difficult to predict and/or
quantify. Actual results may differ materially from those
contemplated by the forward-looking statements for a number of
reasons as described in our Securities and Exchange Commission
filings, including those set forth in the Risk Factors section and
under the heading "Cautionary Statement Concerning Forward-Looking
Statements" in our Annual Report on Form 10-K and our Quarterly
Reports on Form 10-Q.
You are cautioned not to place undue reliance on CVS Health's
forward-looking statements. CVS Health's forward-looking statements
are and will be based upon management's then-current views and
assumptions regarding future events and operating performance, and
are applicable only as of the dates of such statements. CVS Health
does not assume any duty to update or revise forward-looking
statements, whether as a result of new information, future events,
uncertainties or otherwise.
About CVS Health
CVS Health® is the leading health
solutions company, delivering care like no one else can. We reach
more people and improve the health of communities across America
through our local presence, digital channels and over 300,000
dedicated colleagues – including more than 40,000 physicians,
pharmacists, nurses and nurse practitioners. Wherever and whenever
people need us, we help them with their health – whether that's
managing chronic diseases, staying compliant with their medications
or accessing affordable health and wellness services in the most
convenient ways. We help people navigate the health care system –
and their personal health care – by improving access, lowering
costs and being a trusted partner for every meaningful moment of
health. And we do it all with heart, each and every day. Follow
@CVSHealth on social media.
Media contact
Mike
DeAngelis
401-770-2645
Michael.DeAngelis@CVSHealth.com
Investor contact
Larry
McGrath
800-201-0938
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SOURCE CVS Health