Walgreens has reached a settlement with the U.S. Department of Justice, agreeing to pay up to $350 million over allegations of illegally filling millions of prescriptions for opioids and other controlled substances. The settlement requires Walgreens to pay at least $300 million, with a potential additional $50 million obligation if the company undergoes a sale, merger, or transfer before 2032.
The government filed a complaint in January with the U.S. District Court for the Northern District of Illinois, asserting that Walgreens knowingly filled millions of illegal prescriptions for controlled substances from August 2012 to March 2023. These included prescriptions for opioids that were deemed excessive and filled significantly ahead of schedule.
A representative for Walgreens stated that the company disagrees with the government’s legal stance and does not admit liability. The resolution is seen as a strategic move to settle opioid-related litigation with various government entities while allowing Walgreens to concentrate on its turnaround strategy amid declining store visits and market share. Recently, Walgreens announced plans to close 1,200 stores nationwide, following Rite Aid’s bankruptcy filing at the end of 2023 due to similar financial challenges and opioid lawsuit settlements.
The lawsuit against Walgreens includes allegations that its pharmacists filled prescriptions despite evident red flags indicating potential invalidity and that the company exerted pressure on its pharmacists to expedite the process. The government claims Walgreens’ compliance officials ignored significant evidence of unlawful prescription filling and failed to provide crucial information about opioid prescribers to its pharmacists. Additionally, Walgreens is accused of seeking payments for many invalid prescriptions through Medicare and other federal healthcare programs, violating the False Claims Act.
The Justice Department has sought to dismiss its complaint following the settlement agreement. Pharmacies, according to officials, have a legal duty to dispense controlled substances safely and professionally, rather than prioritizing profit over patient safety.
Walgreens has also entered into an agreement with the Drug Enforcement Administration to enhance compliance with regulations surrounding the dispensing of controlled substances. This includes implementing policies to verify the validity of such prescriptions and establishing a system to block prescriptions from illegitimate prescribers. Furthermore, in collaboration with the U.S. Department of Health and Human Services, Walgreens has committed to developing a compliance program encompassing training, board oversight, and periodic reporting on the dispensing of controlled substances.
This settlement addresses four cases initiated by former Walgreens employee whistleblowers. Previously, in 2022, both CVS and Walgreens agreed to a multi-state settlement exceeding $10 billion over lawsuits related to the opioid crisis. Over recent years, drug manufacturers, wholesalers, and pharmacies have collectively agreed to more than $50 billion in settlements with governments, with the majority of funds allocated to combating the opioid crisis.
