Stock Price Gains As Supermarket Chain Agrees To $1.4 Billion Payout

Key takeaways

• Kroger has agreed to pay $1.4 billion to local communities and Native American tribes affected by the opioid crisis
• The company also announced a new deal with C&S to sell over 400 stores so it’s Albertsons merger can pass regulatory hurdles
• Kroger stock was the biggest gainer in the S&P 500 on Friday

Supermarket chain Krogers has been under fire for its alleged role in America’s opioid crisis, and the company has now agreed to pay as much as $1.4 billion to settle the lawsuits about it. The news came alongside a flurry of announcements from Kroger, including updates about its latest quarterly earnings and the proposed Albertsons merger.

The settlement will hit Kroger’s earnings, but the supermarket chain is focusing on the positives and its bright future with the Albertsons merger if it goes ahead. The question is whether the amount will be enough to satisfy the claimants – and if investors are happy with the move.