Walmart discloses $3.3B liability accrued in FY23 to resolve opioid lawsuits

In a regulatory filing, the company states: “During fiscal 2023, Walmart accrued a liability for approximately $3.3 billion for the Settlement Framework and other previously agreed upon state and tribal settlements to resolve substantially all opioids-related lawsuits filed against the Company, as well as all potential claims that could be made against the Company, by states and political subdivisions and tribes. Both the State Settlement Framework and the Tribal Settlement Framework are referred to collectively as the “Settlement Framework.” On August 22, 2023, a settlement administrator determined that a sufficient number of political subdivisions have agreed to participate in the State Settlement Framework. Therefore, the State Settlement Framework will become effective on September 6, 2023, and the Company will pay the remaining approximately $2.8 billion of the original approximately $3.3 billion accrued liability in the third quarter of fiscal year 2024. Although the settlement administrator has determined a sufficient number of political subdivisions have agreed to participate in the State Settlement Framework, and thus the State Settlement Framework will become effective, eligible political subdivisions still have until July 15, 2025 to join the State Settlement Framework.”