Food City grocery chain has settled opioid litigation brought by the state of Tennessee for $44.5 million.
Cumberland County could receive $131,000, though Cumberland County Mayor Allen Foster said that amount could change.
Most of the settlement will go into the state’s Opioid Abatement Fund, though counties in the grocer’s service area will receive direct payments.
“Every entity that contributed to the opioid crisis must be held accountable,” said Tennessee Attorney General Jonathan Skrmetti in a September press release. “Our consumer protection division remains relentless in the pursuit of justice, and I am proud of their aggressive enforcement in this case. By paying a hefty price to resolve past misconduct, Food City provides critical resources to save lives and protect families and can now get back to the business of serving its customers and supporting Tennessee communities.”
The state sued Food City in February 2021, alleging the chain intentionally profited from the opioid epidemic by selling tens of millions of prescription opioids in the state. The complaint filed in Knox County Circuit Court claimed 23% of the opioids sold by the chain from 2006-’14 were from one Knoxville-area store. That store, according to the lawsuit, purchased more 30 mg oxycodone from its distributor from October 2011-January 2012 than was bought by all of the pharmacies in 38 states and Washington, DC. The suit further claimed the company sold large amounts of opioids to people from other counties and far-off states as multiple overdoses happened in their stores or parking lots.
Former Tennessee Attorney General Herbert Slatery, who filed the suit, said in a news release at the time, “It stoked the market with the most diverted and abused opioids, pushed its pharmacists to sell more and more, and ignored the most alarming evidence — overdoses and illegal sales taking place right outside the pharmacy door.”
A Food City spokesperson at the time said the lawsuit was “grossly incorrect and unfair.” While a few pharmacies dispensed a “high volume” of opioids, the company contracted an independent auditor and experts to assure practices complied with state and federal regulations.
As part of the settlement, Food City agreed to ensure future compliance with federal and state regulations through additional training of pharmacy staff, updating the prescription validation process, and monitoring and reporting data related to suspicious activity. The settlement also includes an agreement by Food City to provide dedicated employment opportunities for Tennesseans recovering from addiction.
The Cumberland County Commission unanimously approved participation in the settlement agreement.
In other action, the commission approved:
•Appointment of James Wojcik, MD, as Cumberland County Medical Director for the county’s emergency medical services department
•$1,150 budget amendment recognizing donation to the Art Circle Public Library from private citizens and civic organizations
•$2,800 budget amendment using the county’s fund balance to pay for a hydrologic survey at the Community Complex
•$4,300 budget amendment to accept a grant for the election commission to upgrade existing computer technology and staff training; no local funds are required
•$4,534 budget amendment accepting a grant to provide updated technology at the Art Circle Public Library; the library will use capital outlay funds to provide matching dollars
•$17,000 budget amendment to pay for design services, with funds from the county’s general fund balance
•$35,000 budget amendment using $35,000 of the county fund balance to reinstall the drive-thru window at the Cumberland County Clerk’s Office and to remove and replace signage from the previous business that used the location
•$50,000 budget amendment accepting the Three Star Grant to be used for design and engineering of a hiking bridge at the Little Obed River
•$102,700 budget amendment to accept a grant from the Tennessee Department of Intellectual and Development Disabilities to pay for an inclusive playground at Obed River Park
•$113,000 budget amendment to accept a Healthy Students Stronger Learners Tennessee Grant for the school system
•$123,447 budget amendment transferring funds from the speech pathologist budget line to travel and other contracted services; this position has gone unfilled in the school system, requiring the use of outside contractors
•$124,748.95 budget amendment allocating special education preschool grant funds to the school system
•$142,000 budget amendment reallocating portions of the Innovative Schools Model grant funds to appropriate budget lines based on final budget needs
•Sheriff’s Office donation of 12 wooden benches to Pine View Elementary.