You're guilty, too... We already know the biggest villain of the terrible opioid epidemic that ripped apart families and took hundreds of thousands of lives across America: Purdue Pharmaceutical. The fines and penalties coming to the OxyContin manufacturer (and Sackler family behind it) forced their bankruptcy last year. Out of nowhere, another villain:
- The US Justice Dept sued Walmart yesterday, alleging it helped fuel the crisis (and fuel Walmart profits) because prescriptions were filled too easily at Walmart pharmacies.
- Walmart's response: The government's embarassed. Instead of owning up to failed regulation, they're looking for a scapegoat in Walmart.
76 prescriptions for every 100 Americans... That's the average ratio that 200M+ addictive opioids were dealt out annually from 2006-2016 (it's down since, but still very high). We already know the drug company and tons of doctors who played a role in over-prescribing nationwide. Now Walmart's 5K in-store US pharmacies are under the spotlight.
Cut corners, make profit... The lawsuit basically says that Walmart handed out opioids willy nilly, without following proper rules & regs. Walmart stock fell about 1.5% yesterday as it pledged to fight this allegation in court (lawyers are expensive, too). But mainly it's bad PR, a distraction from the company's core biz, and could result in huge fines or penalties.