(Photo: AP)

(Bloomberg) –Walmart illegally mishandled opioid painkillerssold through its in-store pharmacies for years, two pension fundscontend in lawsuits seeking access to internal records of theworld's second-largest retailer.

Media reports and information revealed in a mass of opioidlawsuits in federal court show how Walmart failed to comply withlaws mandating monitoring of sales of the highly addictivepainkillers, attorneys for the Norfolk County Retirement System andthe Police and Fire Retirement System of Detroit said in theirsuits.

Lawyers for states, cities and counties suing the chain torecoup billions of dollars spent dealing with the fallout from theU.S. opioid epidemic contend Walmart "failed to implement basiccompliance controls to protect its pharmacies and drug distributionbusiness from being used as cover for the illegal dissemination ofopioids," according to the complaints, filed June 16 in DelawareChancery Court.

"Walmart takes its responsibility to shareholders seriously,"Randy Hargrove, a company spokesman, said in an emailed statement."There is no credible basis to conclude Walmart or its boardengaged in any misconduct. We will respond in court asappropriate."

Walmart and several U.S. pharmacy chains face a November trialbefore a federal jury in Cleveland in which states andmunicipalities will seek billions in damages for the companies'alleged failure to recognize "red flags" about heavily repeatedsales of the painkillers.

The funds, which own Walmart shares, said evidence shows someexecutives of the giant retailer ensured a steady stream of opioidsto so-called pill mills — doctors' practices that routinely wrotehundreds of prescriptions for opioid painkillers that were thenused for illegal purposes.

When the federal government moved to investigate and thenprosecute the chain, Walmart used its political clout to "thwartany such enforcement action, causing career public servants to quittheir jobs in frustration and disgust," the funds alleged.

Granting access to the company's internal files is justifiedbecause investors have reason to suspect Walmart executivesviolated legal duties to shareholders, according to the complaints.Bentonville, Arkansas-based Walmart is the world's second-largestretailer behind Amazon Inc. based on "revenues, profits, assets andmarket value," according to Forbes magazine.

Other Delaware judges have ordered companies involved in theopioid industry to turn over such documents. In January, ChanceryJudge Travis Laster directed AmeriSourceBergen Corp., one of thelargest U.S. drug distributors, to disclose files about itshandling of the painkillers to investors. The Chesterbrook,Pennsylvania-based company is accused of turning a blind eye toexcessive opioid orders to rack up billions in profits.

The Walmart cases are Norfolk County Retirement System v.Walmart Inc., 2020-0482, and Police and Fire Retirement System ofDetroit v. Walmart Inc., 2020-0478, Delaware Chancery Court(Wilmington)

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