Kathmandu— Walmart has settled a lawsuit brought by the U.S. Department of Justice accusing the company of contributing to the national opioid crisis through its pharmacies’ dispensing practices. The settlement, confirmed by both Walmart and the Justice Department on Friday, resolves claims that the retailer failed to adequately monitor and report suspicious prescriptions for controlled substances dating back to 2013. While specific terms were not disclosed, Walmart stated the amount is “immaterial” given its recent $11.7 billion net income over a six-month period.

Lawsuit Allegations and Background

The Justice Department’s lawsuit, filed in December 2020 during the final months of the Trump administration, alleged that Walmart repeatedly violated the Controlled Substances Act by overlooking “red flags” related to opioid prescriptions. The government claimed the company failed to properly track and report these suspicious orders, potentially exacerbating the opioid epidemic. At one point, the department estimated potential civil penalties could reach billions of dollars.

Recent Court Rulings

In March 2024, U.S. District Judge Colm Connolly narrowed the scope of the case, dismissing claims related to reporting suspicious prescriptions to the Drug Enforcement Administration and failures by pharmacists to document warning signs. However, the judge allowed the government to pursue claims that Walmart compliance personnel were aware of invalid prescriptions being filled and that pharmacists knowingly dispensed those prescriptions.

Broader Opioid Settlement Landscape

Walmart’s settlement is part of a larger wave of legal actions against companies involved in the opioid crisis. In 2022, Walmart agreed to pay $3.1 billion to settle thousands of lawsuits from state and local governments. Other major players like CVS and Walgreens have also reached similar settlements for substantial amounts. Purdue Pharma, the maker of OxyContin, pleaded guilty to criminal charges in 2020 and filed for bankruptcy, while drug wholesaler Cencora (formerly AmerisourceBergen) has also faced scrutiny.

Impact and Company Response

Walmart shares closed up slightly on Friday following the announcement. The company stated it was “pleased to resolve this matter” and reaffirmed its commitment to providing patient care through its pharmacists. The Justice Department expressed satisfaction with the settlement, emphasizing its ongoing efforts to hold accountable those responsible for contributing to the opioid crisis.

The dismissal of the case was formally filed on Thursday in federal court in Delaware, bringing an end to this particular legal battle while broader efforts continue to address the ongoing opioid epidemic.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.