Tennessee Attorney General Herbert H. Slatery III filed a lawsuit against Food City Supermarkets and K-VA-T Food Stores in Knox County Circuit Court, alleging that Food City pharmacies in Tennessee unlawfully sold tens of millions of prescription opioids, specifically immediate-release oxycodone 30mg (Oxy 30), for over a decade. The lawsuit claims Food City intentionally profited from the opioid epidemic and that their failure to maintain effective controls against opioid abuse and diversion directly contributed to the crisis.
The state contends that Food City violated the Tennessee Consumer Protection Act and public nuisance statutes, creating a common-law public nuisance by endangering public health and disrupting the commercial marketplace. General Slatery stated that Food City was aware of customer addictions and the involvement of problematic pill mills but prioritized profits over implementing necessary safeguards.
The 208-page complaint details Food City’s alleged misconduct, including selling over 206 million prescription opioids, with almost 25% sold by Food City #674 in Bearden. This specific location also sold over 42.5 million Oxy 30 pills, representing 44% of its total Oxy 30 sales.
Food City allegedly ignored reports of suspicious prescribers, even after these medical professionals faced raids, disciplinary actions, arrests, or indictments. The company routinely sold large quantities of high-risk prescription combinations, including the “Holy Trinity” of an opioid, a benzodiazepine (e.g., Xanax), and a muscle relaxer (e.g., Soma).
The lawsuit claims Food City sold Oxy 30 and other opioids to individuals involved in drug trafficking rings. Between October 2011 and January 2012, Food City #674 purchased more Oxy 30 from AmerisourceBergen than all of AmerisourceBergen’s other pharmacy customers in 38 states and the District of Columbia combined. Food City #674 also sold opioids with a higher morphine milligram equivalent (MME) than all pharmacies in 81 Tennessee counties.
Food City is accused of implementing a prescription savings card program that offered discounts on all opioids, including Oxy 30, attracting individuals seeking cheap oxycodone. The company allegedly hoarded opioids by ordering the maximum quantity from suppliers and actively sought secondary suppliers when primary sources reduced thresholds.
Food City allegedly pressured employees to increase opioid sales and fill suspicious prescriptions, threatening them if sales targets were not met. Employees who violated policies and regulations at high-volume opioid-selling stores were retained. The lawsuit claims Food City illegally transferred opioids between pharmacies to circumvent supplier thresholds and maintain a steady supply. Even after multiple overdoses occurred at or near their stores, Food City continued selling large quantities of opioids.
The company reportedly resisted public and private reports of compliance issues related to controlled substances. Food City also allegedly sold large quantities of opioids to individuals from foreign countries and distant states within the U.S. This lawsuit is part of a series of actions taken by the state against companies for opioid-related misconduct, including lawsuits against Purdue Pharma, Endo Pharmaceuticals, and AmerisourceBergen. Tennessee is also leading a multistate investigation into opioid manufacturers and distributors. The Attorney General’s Office aims to secure funds and resources for opioid abuse prevention, treatment, and education in communities affected by the epidemic.
The Attorney General’s office is seeking a resolution that will provide funding and resources to address opioid abuse prevention, treatment, and education in affected communities. This lawsuit follows previous actions against opioid manufacturers and distributors, highlighting the state’s commitment to combating the opioid crisis.
