Walgreens has come to a settlement with the U.S. Department of Justice, agreeing to pay up to $350 million. This agreement follows accusations that the pharmacy chain illegally filled millions of prescriptions for opioids and other controlled substances over the past decade.
According to the settlement reached recently, Walgreens must pay the government a minimum of $300 million, with an additional potential $50 million if the company undergoes a sale, merger, or transfer before 2032.
The Justice Department’s complaint, filed in January, claims that Walgreens knowingly filled millions of illegal prescriptions from August 2012 to March 2023. It asserts that these included prescriptions for excessive amounts of opioids and those filled well before the appropriate time.
In a statement, Walgreens spokesperson Fraser Engerman expressed disagreement with the government’s claims while emphasizing that this resolution allows the company to address ongoing opioid-related litigation with various government entities and focus on their recovery strategy.
As Walgreens grapples with declining store traffic and a shrinking market share, it has announced plans to close 1,200 stores across the country. Compounding the issues in the pharmacy sector, Rite Aid has filed for bankruptcy due to similar struggles and legal settlements related to opioids. Notably, the Department of Justice also initiated a lawsuit against CVS in December on similar grounds.
The complaint highlights that Walgreens pharmacists filled prescriptions despite obvious signs that they were likely invalid. The government argues that Walgreens pressured its pharmacists to process these prescriptions quickly and ignored significant evidence that would have warned them against doing so.
Moreover, Walgreens allegedly sought payment for these questionable prescriptions through federal healthcare programs, breaching the False Claims Act according to the government’s claims.
In light of the recently reached settlement, the U.S. Justice Department has moved to dismiss its complaint. Attorney General Pamela Bondi underscored the legal responsibility pharmacies hold to ensure safe practices when dispensing controlled substances, emphasizing the need to curb the opioid crisis and hold negligent parties accountable.
Additionally, Walgreens has pledged to work with the Drug Enforcement Administration to enhance compliance with controlled substance dispensing regulations. This includes implementing policies that require pharmacists to verify prescription validity and preventing orders from questionable prescribers.
Furthermore, Walgreens has agreed with the Department of Health and Human Services to implement a compliance program with training and oversight aimed at improving their management of controlled substances.
This settlement resolves several cases brought forward by whistleblowers who were former employees of Walgreens. In 2022, both CVS and Walgreens had to settle for over $10 billion in multi-state lawsuits related to the opioid crisis. Over recent years, drug manufacturers, wholesalers, and pharmacies have collectively agreed to more than $50 billion in settlements, emphasizing the necessity of using these funds to combat the ongoing opioid issue in the nation.
