Kroger has agreed to pay $17 million to settle a class action lawsuit accusing the grocery giant of overcharging insured customers for prescription drugs, and shoppers who filled prescriptions at any of Kroger's pharmacy-operated store banners since December 9, 2018, could be entitled to a payout. The case centers on whether Kroger properly reported the lower prices available through its Rx Savings Club when calculating what insured customers owed at the pharmacy counter.
The lawsuit, Kirkbride et al. v. The Kroger Co., was filed in January 2021 in the U.S. District Court for the Southern District of Ohio and is pending before Chief Judge Algenon L. Marbley, with a final settlement fairness hearing scheduled for January 11, 2027, according to OpenClassActions. As reported by NBC 5 Chicago, Kroger denies any wrongdoing, and the settlement resolves claims that the company's alleged pricing practices resulted in customers paying inflated amounts for medications at its store pharmacies.
What the Lawsuit Alleged
At the heart of the dispute is whether Kroger's Rx Savings Club — a discount cash program requiring an annual membership fee — should have counted as the pharmacy's standard price when insurers calculated patient copays. Kroger has argued in court filings that Rx Savings Club prices did not represent standard cash rates because participants paid a membership fee and had to meet specific conditions, per The Economic Times. Kroger has also reported that its retail prices for prescriptions were correct, according to NBC 5 Chicago.
Plaintiffs' attorneys, from the national law firm Bursor & Fisher, P.A., built their case around an audit of more than 158 million Kroger pharmacy transactions, which experts used to model class-wide damages, the outlet notes. Bursor & Fisher secured class certification in the Ohio federal court before negotiating the $17 million settlement.
Who Qualifies and How Much They Could Get
The eligible payment period runs from December 9, 2018, through August 23, covering anyone who used prescription insurance benefits to pay for medication at a Kroger pharmacy during that window. The settlement covers qualifying insured prescription purchases across 20 Kroger-operated retail banners, including Ralphs, Fred Meyer, King Soopers, Fry's, Smith's, Pick 'n Save, Dillons, Food 4 Less and City Market, according to Recall Refunds. Mariano's parent company Kroger is involved in the multi-million-dollar settlement, the report notes, meaning shoppers at that Chicago-area chain are covered too.
Payment amounts depend on how much each claimant paid for Kroger prescription drugs and on the total number of valid claims filed, so individual payouts will vary. No single plaintiff's payment is expected to exceed $5,000. Known claimants — those Kroger has already identified through its internal purchase records — have received a notice and claim identification number and can complete a settlement claim form, while unknown claimants can also file a claim but may need to submit supporting documentation or data identifying their eligible purchases.
Deadlines and Documentation
Claimants have until December 21 to file. Anyone submitting out-of-pocket prescription expenses of $8,000 or more must provide supporting documentation such as receipts or insurance statements, per settlement administration terms detailed by Claim Depot. Claims under that threshold generally do not require upfront paperwork if the customer already appears on Kroger's known purchaser list.
Class members who would rather pursue their own legal action instead of joining the settlement must submit a formal opt-out request to the settlement administrator by October 22. Doing so waives any claim to the $17 million fund. The settlement administrator may also request additional documentation to confirm that a claimant is a member of the settlement class, and will contact unknown claimants who submit a claim. The fund itself will also be used to pay court fees before remaining money is distributed. Payments are expected to go out within 120 days after final court approval and the resolution of any appeals.
Part of a Bigger Pattern in Pharmacy Pricing
Kroger's settlement is not an isolated case. Similar usual and customary pricing lawsuits and arbitrations have targeted other major retail pharmacy operators, including Walgreens, Safeway, and CVS, over how their discount cash programs affect insured copay calculations, reflecting a broader trend as retail chains built cash discount clubs to compete with big-box rivals. Industry research published this year shows supermarket chains lean heavily on in-store pharmacies to drive foot traffic, since grocery shoppers picking up prescriptions often buy food and household items during the same visit — a dynamic that makes pharmacy pricing trust central to a chain's broader retail strategy.
The case also lands amid intensifying federal scrutiny of prescription pricing. Hoodline reported that the Federal Trade Commission reached a landmark agreement with pharmacy benefit manager CVS Caremark in July to enforce point-of-sale rebate pass-throughs meant to lower out-of-pocket drug costs nationwide. Individual payouts in the Kroger case will ultimately hinge on total claim volume and spending levels, and the dispute underscores ongoing friction over pricing transparency involving major grocers, pharmacy benefit managers and federal regulators alike.
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