The Kroger logo represents some 26 different brands and retailers. Kroger and the government are settling a huge civil case for its part in the opioid epidemic that had gripped the nation. Morro Bay’s share will go to the County for its existing drug treatment programs.
Drug treatment programs in San Luis Obispo County will get a little boost, after the Morro Bay City Council decided to turn over its share of the latest opioid settlement for use on existing treatment programs.
City Attorney Chris Neumeyer brought the matter to the council recommending they formally “participate” in the settlement and let the money go to the County for the drug treatment programs it runs. It’s the smart thing to do on more than one front.
“Similar to the prior settlement agreements,” Neumeyer’s report said, “the use of the funds is restricted to opioid remediation [e.g., addiction treatment programs]. By default, these funds are allocated to the County, but the City is able to elect to receive a direct distribution at any time, provided that the election is made at least 60-days prior to a distribution date; however, use of the funds also requires strict accounting requirements.
“These requirements only apply to the City if it elects to receive direct distribution and does not apply to the City if the funds go to the County. In terms of enforcement, the State enforces the expenditure requirements. Because of this, it is recommended that the funds be allocated to the County.”
The newest settlement is in a huge civil case — the “National Opioid Settlement Agreements with Kroger Co.” — and part of the blowback against big pharma for its role in the opioid crisis that’s gripped the nation.
In 2021, the City Council approved joining the settlement agreements with McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen Corporation,” Neumeyer said, “and Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc..”
That settlement was in a case the City was not a party to but was brought by attorney generals from several States and sought damages from the companies for the “manufacture and distribution of opioids and, in particular, the impact of such activities upon the national opioid epidemic.”
That settlement was followed in 2023 by settlements with “Teva, Allergan, Walmart, Walgreens, and CVS, who are additional defendants that are retailers and manufacturers of opioids,” the report said.
The Kroger case settlement is still being negotiated as to amount, but the prediction is it will total about $1.2 billion, divided amongst all the participating agencies — States, Counties and Cities.
Past settlements for Morro Bay were in the hundreds of thousands, but spread out over many years.
“In 2023 and 2021,” the report said, “the Council approved national opioid settlement agreements with other defendants and the County estimated the amount then, respectively, to be approximately $252,000 over 6-15 years for City’s share (2021), and approximately $322,000 over 18 years for City’s share (2023).”
The City of Morro Bay doesn’t offer drug treatment programs, though judging from the police media logs, the police department does arrest a fair number of people for mostly minor drug offenses.
Given the State’s emphasis on treatment for addicts, it could probably be assumed that most of these folks would be offered drug treatment to lessen a sentence or to avoid jail altogether.
And the County has several such “diversion” programs, some of which target certain populations, such as military veterans, juveniles or the homeless to name a few.
The County also contracts with non-profit agencies that run programs assisting children and families dealing with drug addiction.
Kroger is a huge retail grocery and pharmacy company. According to its website Kroger has “nearly 2,800 stores in 35 states under two dozen banners and annual sales of more than $132.5 billion, Kroger today ranks as one of the world’s largest retailers.”
Among the numerous brands under the Kroger corporate umbrella is Ralph’s supermarket, which has a location in Los Osos. Others include Food4Less and Payless, among a total of 26 different retailers and brands.
