Tennessee Attorney General Herbert H. Slatery III has filed a lawsuit against Food City Supermarkets, LLC and K-VA-T Food Stores, Inc., targeting their pharmacies’ practices, particularly in Knoxville, TN, concerning the sale of prescription opioids. The lawsuit, lodged in Knox County Circuit Court, alleges that Food City pharmacies in Tennessee, especially those in the Knoxville area, unlawfully dispensed tens of millions of opioid prescriptions over more than a decade, significantly contributing to the opioid crisis while prioritizing profit.
The State of Tennessee asserts that Food City violated the Tennessee Consumer Protection Act and Tennessee’s public nuisance statute, specifically citing three Knoxville-area stores. The lawsuit claims Food City endangered public health and disrupted the commercial marketplace through practices that fueled opioid abuse and diversion.
General Slatery stated, “Food City made a lot of money from filling opioid prescriptions. In itself that’s not a problem. The problem is how they did it.” He emphasized the company’s alleged awareness of customer addiction and problematic prescribing patterns from known “pill mills,” yet their failure to take meaningful action to curb opioid sales. Slatery further accused Food City of incentivizing opioid sales, disregarding overdose incidents occurring near their pharmacies, and exacerbating the opioid market with highly abused drugs. The Attorney General’s office is committed to holding accountable businesses that enable or ignore suspect medical practices contributing to Tennessee’s opioid epidemic, which claims approximately four to five lives daily.
The 208-page complaint details numerous allegations against Food City’s opioid dispensing practices. Key accusations include:
- Over a decade, Food City pharmacies dispensed over 206 million opioid prescriptions, with nearly 25% originating from Food City #674 in Bearden, Knoxville.
- Food City #674 in Bearden alone sold over 42.5 million Oxycodone 30mg pills, accounting for 44% of the company’s total sales of this highly potent opioid.
- Despite internal and external warnings about suspicious prescribers – some of whom faced raids, disciplinary actions, arrests, or indictments – Food City allegedly continued to fill prescriptions from these sources.
- The pharmacies routinely dispensed dangerous combinations of drugs, notably the “Holy Trinity” – an opioid, a benzodiazepine (like Xanax), and a muscle relaxer (like Soma).
- Sales of Oxycodone 30mg and other prescription opioids were allegedly made to individuals involved in drug trafficking.
- Food City #674 in Bearden’s demand for Oxycodone 30mg was so high that between October 2011 and January 2012, it surpassed the combined demand of all other AmerisourceBergen pharmacy clients in 38 states and Washington D.C.
- Food City #674 in Knoxville reportedly sold opioids with a higher morphine milligram equivalent (MME) than all pharmacies in 81 other Tennessee counties.
- A prescription savings card program allegedly offered discounts on all opioids, including Oxycodone 30mg, attracting individuals seeking cheaper oxycodone in the Knoxville area.
- Food City pharmacies were allegedly instructed to stockpile opioids, ordering maximum quantities from suppliers.
- When primary suppliers reduced opioid supplies to high-volume pharmacies in Knoxville, Food City allegedly sought secondary suppliers for Oxycodone 30mg.
- Employees faced pressure to increase opioid sales, with threats for underperformance and retention of staff at high-volume opioid pharmacies despite policy and regulatory breaches.
- Illegal and covert transfers of opioids between Food City pharmacies allegedly occurred to maintain supply and bypass supplier limits.
- Continued high-volume opioid sales persisted even after reported overdose incidents at or near Food City locations.
- The company allegedly resisted public and private concerns regarding its controlled substance compliance.
- Sales were made to individuals from various foreign countries and distant US states, suggesting a broader draw to Food City Knoxville and other locations for opioid prescriptions.
This lawsuit is part of a broader state-level initiative against companies implicated in the opioid crisis. Tennessee has previously taken legal action against opioid manufacturers like Purdue Pharma and Endo Pharmaceuticals, as well as distributors such as AmerisourceBergen Drug Corporation. Tennessee is also leading a multi-state coalition of Attorneys General investigating and seeking accountability from opioid manufacturers and distributors to secure funds for opioid epidemic abatement.
The Attorney General’s Office aims to achieve resolutions that will allocate funds and resources for opioid abuse prevention, treatment, and education across Tennessee communities, particularly those disproportionately affected by the opioid epidemic.
For further details, the full complaint can be accessed here: https://www.tn.gov/content/dam/tn/attorneygeneral/documents/pr/2021/pr21-06-complaint.pdf
