Walmart reaches proposed settlement for 3 lawsuits filed by shareholders
Date
10/20/2024 6:28:21 AM
(MENAFN) Walmart announced on Friday that it has reached a proposed settlement related to three lawsuits filed by shareholders concerning the company's handling of prescription opioids. According to the details disclosed in a regulatory filing, insurance carriers will pay Walmart USD123 million, excluding any attorney fees and expenses awarded to the plaintiffs' legal counsel. As part of the settlement, Walmart has also agreed to maintain certain corporate governance practices for at least five years, aiming to strengthen oversight related to the distribution of prescription medications.
The settlement does not include any admission of liability by Walmart and is subject to court approval. The lawsuits were initiated by three shareholders in the Delaware Court of Chancery, alleging that current and former directors and officers breached their fiduciary duties by failing to adequately oversee the company’s prescription opioid distribution and dispensing practices. This legal action reflects the increasing scrutiny on major retailers regarding their role in the opioid crisis.
Walmart’s proposed settlement comes in the wake of a significant USD3.1 billion agreement the company reached in 2022 to settle lawsuits across the United States related to the impact of opioid prescriptions filled by its pharmacies. These lawsuits highlighted the responsibility of large retailers in managing prescription medications and the consequences of their distribution practices on public health.
The opioid crisis has led to a growing number of legal challenges against companies involved in the pharmaceutical supply chain, and Walmart’s case exemplifies the heightened accountability these retailers face. As the settlement moves forward, it underscores the ongoing need for improved oversight and corporate governance within the pharmaceutical sector to prevent further harm related to prescription opioids.
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