Walgreen Co. (“Walgreens”), a subsidiary of Walgreens Boots Alliance, Inc. (together with Walgreens, the “Company”), has agreed in principle to financial amounts and payment terms as part of settlement frameworks (the “Settlement Frameworks”) to resolve a substantial majority of opioids-related lawsuits filed against the Company by the attorneys general of participating states and political subdivisions (the “Settling States”) and litigation brought by counsel for tribes.
Under the Settlement Framework with the Settling States, the Company expects to settle all opioid claims against it by such Settling States for up to approximately $4.79 billion in remediation payments to be paid out over fifteen (15) years. Under the Settlement Framework with counsel for tribes, the Company expects to settle all opioid claims against it by such participating tribes for up to approximately $154.5 million in remediation payments to be paid out over fifteen (15) years. The Settlement Frameworks provide for the payment of up to approximately $753.5 million in attorneys’ fees and costs over six (6) years beginning in year two of the Settlement Frameworks. The Settlement Frameworks include no admission of wrongdoing or liability by the Company.
The Settlement Frameworks are subject to contingencies and will not become effective unless and until the Company makes an independent determination that certain injunctive terms still subject to negotiation are acceptable to the Company. The Settlement Framework with the states is also contingent on (1) a sufficient number of Settling States agreeing to the Settlement Framework following a sign-on period, and (2) following a notice period, a sufficient number of Settling States, including those that have not sued, agreeing to the Settlement Framework (or otherwise having their claims foreclosed). The Company cannot predict if or when either Settlement Framework will be finalized. The Company will continue to vigorously defend against any litigation not covered by the Settlement Frameworks, including private plaintiff litigation. The Company continues to believe it has strong legal defenses and appellate arguments in all of these cases.
Cautionary Note Regarding Forward-Looking Statements
All statements in this report that are not historical including, without limitation, those regarding finalization of the Settlement Frameworks and payments anticipated to be made pursuant to the Settlement Frameworks, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “will,” “likely,” “intend,” “plan,” “aim,” “continue,” “believe,” “seek,” “anticipate,” “upcoming,” “may,” “possible,” and variations of such words and similar expressions are intended to identify such forward-looking statements.
These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions, known or unknown, that could cause actual results to vary materially from those indicated or anticipated. These risks, assumptions and uncertainties include those described in Item 1A (Risk Factors) of our Annual Report on Form 10-K for the fiscal year ended August 31, 2022 and in other documents that we file or furnish with the Securities and Exchange Commission. If one or more of these risks or uncertainties materializes, or if underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. All forward-looking statements we make or that are made on our behalf are qualified by these cautionary statements. Accordingly, you should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.
We do not undertake, and expressly disclaim, any duty or obligation to update publicly any forward-looking statement after the date of this release, whether as a result of new information, future events, changes in assumptions or otherwise.
