Steamboat Springs City Council members will consider the city’s participation in a settlement linked to a major opioid lawsuit against Kroger Co.

The settlement agreement with Kroger, one of the largest grocery store chains in the country, comes after lawsuits filed by Colorado Attorney General Phil Weiser and attorneys general in 32 other states that alleged the company’s pharmacies illegally and negligently overfilled opioid prescriptions without investigating red flags.

In September, Kroger, admitted no wrongdoing or liability, but agreed to pay up to $1.4 billion over 11 years, an amount including $1.2 billion for state and local governments across the country, $36 million to Native American tribes and roughly $177 million to cover lawyers’ fees and costs.

---

---

To collect funds from the Kroger lawsuit, the city must participate in the settlement by releasing its opioid related legal claims against the company.

In 2021, the city approved the Colorado Opioids Settlement Memorandum of Understanding to facilitate the state’s “maximum recovery from opioid distributors being sued in national litigation,” according to the council’s agenda packet for Tuesday.

---

---

Last year, Colorado reached a settlement with five opioid companies involved in the sale of opioids including, Teva Pharmaceutical Industries, CVS Health Corporation/CVS Pharmacy and Walgreens.

The city joined the settlement and released claims against the companies, according to the communication form, and has already received some payments through its participation in the state’s opioid memorandum of understanding.

City staff are recommending council adopt a resolution Tuesday that would approve Steamboat’s participation in the Kroger settlement and delegate authority to the city manager and city attorney to approve future settlements under the boundaries laid out in the memorandum of understanding.

Under the memorandum of understanding, the city may use funds obtained from the settlements for opioid abatement efforts including the distribution, use and training for naloxone, education and support for first responders, treatment and community education.

If enough local governments in Colorado join the Kroger settlement, the state could receive an estimated $70 million, according to the city.

The memorandum of understanding states 20% of the funds received in an opioid settlement would be paid directly to participating local governments, with .38% of the money directed to Colorado split amoung four municipalities in Routt County, if they choose to participate: Steamboat, Oak Creek, Yampa and Hayden.

In Moffatt County, Dinosaur and Craig could receive a combined .23% of the Kroger opioid settlement funding to Colorado if local officials choose to participate in the settlement.

Between 2016 to 2022, 474 people overdosed on drugs and ended up in the emergency department in Craig or Steamboat, according to the Colorado Department of Public Health and Environment.

Between 2012 and 2022, 80 people died from drug overdoses in Moffat and Routt counties, including a peak of 13 people in 2021.

A recovery resource list is available for both Routt and Moffat counties on The Health Partnership website at TheHealthPartnership.org under the Resources tab.

The SAMHSA National Helpline at 800-662-HELP (4357) is a free, confidential, 24/7, 365-day treatment referral and information service in English and Spanish for individuals and families facing mental health or substance use disorders.