Dive Brief:
- Albertsons must pay Washington state $900 million for its pharmacies’ role in fueling the opioid prescription crisis by failing to prevent misuse of the highly addictive medication, a state court judge ruled Thursday.
- Judge Janet Helson of King County Superior Court in Seattle ruled that Albertsons violated state and federal law by failing to maintain safeguards that could identify and resolve “red flags” indicating suspicious orders of the drugs from its pharmacies.
- Albertsons said in a statement that it is “disappointed” by the ruling and may appeal.
Dive Insight:
The ruling noted that between 2006 and 2022, Albertsons filled more than 6.5 million opioid prescriptions in Washington state that triggered one or more “commonly accepted red flags.”
Judge Helson noted that it was Albertsons’ duty to maintain systems that could identify and prevent suspicious prescriptions and to report those red flags to the authorities. The ruling noted that Albertsons filled 5.5 million prescriptions from five “pill mill” doctors in the state who later had their licenses suspended or revoked.
“Albertsons possessed, but routinely disregarded or ignored, information and tools that could have helped prevent diversion, choosing sales and profits over patient safety,” the ruling stated.
Helson determined that Albertsons is required to pay an $800 million abatement and $100 million in civil penalties.
In its statement, Albertsons said it disagrees with the ruling and is currently evaluating its options. At trial, the company said that its pharmacies “are a mirror of what the doctors are doing.”
“We are proud of our pharmacists and their dedication to the patients and communities they serve, and we will continue to support our customers and communities across Washington through responsible pharmacy operations,” Albertsons said in its statement.
Thursday’s ruling marks the latest challenge for a beleaguered Albertsons. Back in April, Albertsons announced it had reached a $774 million framework to settle most of the opioid-related claims brought against it nationally. That arrangement contributed to the company’s nearly $500 million net loss for the fourth quarter of fiscal 2025.
Washington state’s attorney general sued Albertsons and several other pharmacy chains in 2022, with the nine-week trial commencing this past summer.
Albertsons posted another quarter of declining comp sales in its Q2 earnings last month, and this past summer restructured to streamline its operating divisions and center store merchandising. Last week, the company presented closing arguments in its case that claims Kroger is to blame for the failure of their proposed merger.
