CVS Volume Drops to 261st as Opioid Court Ruling Sheds Legal Burden

On August 19, 2025, CVS Health (NYSE: CVS) closed with a 1.14% gain, trading on a volume of $0.37 billion, a 43.1% drop from the prior day’s activity, ranking 261st in market volume. The stock’s performance followed a landmark legal ruling that could reshape its financial obligations related to opioid litigation.

The Delaware Supreme Court ruled that insurers, including AIG and Chubb, are not required to cover CVS’s legal costs stemming from thousands of lawsuits tied to the opioid crisis. The court determined that the claims—filed by governments, hospitals, and third-party payers—sought economic damages rather than individualized bodily injury or property damage, which are typically covered under general liability policies. This decision aligns with a prior 2022 ruling in a similar case involving Rite Aid, where Chubb prevailed. CVS contested the decision, asserting its policies offer broader coverage, but the court found its insurance terms “similar in all material respects” to Rite Aid’s.

The ruling removes a potential financial buffer for CVS, which had been appealing prior Delaware Superior Court decisions denying coverage in over 2,300 lawsuits. While the company reached a $5 billion nationwide opioid settlement in 2022, the court clarified that such settlements address systemic crisis costs rather than individual claims. This outcome could increase long-term liabilities for CVS, particularly as governments and healthcare providers continue to seek compensation for addiction-related expenses.

CVS is not the only pharmacy chain affected by these legal challenges. Competitors like Walgreens and Walmart have also settled opioid claims for billions. The ruling underscores a broader trend where insurers are increasingly resisting coverage for opioid litigation, arguing that pharmacy chains’ role in distributing prescriptions does not equate to direct harm claims.

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