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Albertsons Posts Loss After $600M Opioid Settlement Charge

Wall Street Journal US Business •
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Albertsons posted a substantial fourth-quarter loss, swinging sharply from a profit recorded the previous year. This financial reversal stemmed directly from a massive accounting charge associated with a newly established framework to resolve opioid-related litigation nationally. The results provide a clear illustration of the financial toll such legal liabilities exact on major retailers.

Supermarket operator reported a loss of $480.8 million, or 94 cents per share, contrasting sharply with the $171.8 million profit, or 29 cents per share, it posted in the year-earlier period. Investors must account for the $600 million charge taken against earnings to cover the costs associated with resolving these long-standing drug distribution claims.

Company filings reveal the opioid settlement framework amounts to $774 million in total to settle substantially all claims against the chain. Lawsuits have alleged the company's pharmacies failed in their duty to prevent the illicit over-dispensing and subsequent overuse of prescription painkillers across various jurisdictions. Investors are now assessing the impact of this final resolution on future operational risk profiles.