Kroger Settlement - Local Action Requested

Updated June 10, 2024: 

Local action is requested to approve the Kroger opioid settlement and bring an additional $40 million to North Carolina to address the opioid crisis.  The deadline for local governments to approve the Kroger settlement is August 12, 2024.  Here is some key background information and an outline of required local actions:

BACKGROUND

In 2023, Attorney General Josh Stein and other attorneys general reached an agreement in principle with Kroger that would require the grocery chain to pay $1.37 billion to participating state and local governments for its role in the opioid crisis. The settlement covers North Carolina and other states where Kroger operates under its own name or the name of a subsidiary (such as Harris Teeter here in North Carolina). Read the press release here.

A maximum of just over $40 million may be coming to North Carolina state and local governments between 2024 and 2034 to address the opioid crisis if all relevant local governments join the settlement. This chart shows the maximum amount that each local government stands to receive from the Kroger settlement, above and beyond the amounts they will receive from other opioid settlements and bankruptcy resolutions.

After North Carolina and other states approved the settlement in the Spring of 2024, Kroger agreed to move to the next stage of the settlement process, in which local governments in North Carolina and other participating states are invited to join the settlement.  To maximize the funds available to North Carolina state and local governments under the settlement, all 100 counties and all municipalities with a population of 30,000 or over must join the settlement by August 12, 2024.

In addition to joining the settlement itself, local governments are asked to sign onto the Second Supplemental Agreement for Additional Funds (SAAF-2), which governs the allocation, use, and reporting of funds from the Kroger settlement.  You can read the text of the national settlement here, the SAAF-2 here, and an FAQ here.

LOCAL ACTION REQUESTED

To join the Kroger settlement and sign onto the SAAF-2, local governments follow a two-step process:

FIRST, the governing board of the local government passes a new resolution authorizing designated local officials to sign onto the Kroger Settlement and SAAF-2.  To assist with this step, a draft resolution template is available here for counties and here for municipalities.

Note that some counties and municipalities may have previously passed resolutions as part of signing onto the Wave One or Wave Two Settlements that provide authorization for local government officials to sign onto the Kroger Settlement.  Local governments are encouraged to consult their local legal counsel on the wording of prior resolutions to determine if a new resolution is required.

SECOND, after receiving authorization from their respective governing boards, designated local officials (such as managers or attorneys) will sign onto the Kroger Settlement and SAAF-2 through an electronic sign-on process.  We anticipate that on June 14, 2024, all 100 counties and the 36 municipalities identified above will receive an email from the national administrator, Rubris, inviting each local government to sign onto the Kroger Settlement and SAAF-2.  (Rubris will use the email addresses previously provided to Rubris by each local government.)

August 12, 2024 is the deadline for local governments to join the Kroger settlement and approve the SAAF-2.

FOR MORE INFORMATION

For local governments that have previously filed a lawsuit against opioid defendants, information about the Kroger Settlement has also been provided to your outside counsel, with whom we encourage you to consult.

Legal questions about the Kroger settlement and SAAF-2 may be directed to outside counsel or the NC Department of Justice at opioidsettlement@ncdoj.gov

Learn more: