San Francisco City Attorney David Chiu announced a $229 million settlement with Walgreens on Wednesday after winning a lawsuit against the company in 2022. The case was in the US District Court for the Northern District of California.

According to Chiu, Walgreens will pay $229,610,000 to the city over 14 years with the “vast majority” coming in the first eight years. The settlement funds will go towards “addressing the opioid crisis in San Francisco.”

In response to the settlement, Chiu stated:

Cities like San Francisco have shouldered much of the burden of the opioid epidemic. Thousands of attorneys, public health officials, and advocates have spent nearly two decades trying to hold the opioid industry accountable for creating this public health crisis. I am proud our office was able to prove in court that the opioid industry perpetuated this problem. Following our win against Walgreens during the liability phase, this historic agreement ensures Walgreens is held accountable for the crisis they fueled and our City receives appropriate resources to combat the opioid crisis and bring relief to our communities.

Chiu sued Walgreens for public nuisance on behalf of the people of California. At trial, the plaintiff met their burden of offering sufficient evidence to show Walgreens more likely than not knowingly engaged in unreasonable conduct that was a substantial factor in causing the San Francisco opioid epidemic. The court ruled that Walgreens dispensed these pills without adequate due diligence. The court also ruled that Walgreens failed to screen for suspicious orders of opioids.

Additionally, in response to the settlement, San Francisco Mayor London Breed stated:

San Francisco has been dealing with the impacts of opioids for years including the need for direct treatment and support for those struggling with addiction. But we’ve also had to deal with associated impacts of opioid addiction such as the need for community ambassadors and other neighborhood support. This funding secured by the City Attorney will help us to maintain and expand key programs in these areas with solutions that we know are working like treatment beds, dual diagnosis beds, abstinence based programming, and transitional housing.

The settlement agreement will be presented to the San Francisco Board of Supervisors and Breed for approval.