Walgreens has reached a $350 million settlement with the U.S. Department of Justice (DOJ) following accusations that the pharmacy chain illegally filled millions of opioid and controlled substance prescriptions over the past decade. The settlement is a significant step in addressing the pharmacy’s role in the opioid crisis.
Settlement Details and Terms
As part of the settlement, Walgreens will pay at least $300 million to the government and could owe an additional $50 million if the company is sold, merged, or transferred before 2032. The settlement was reached after the DOJ filed a complaint in January, accusing Walgreens of filling millions of illegal prescriptions between August 2012 and March 2023, including prescriptions for excessive opioids and those filled significantly earlier than allowed.
Government Allegations and Walgreens’ Defense
The DOJ alleges that Walgreens knowingly filled prescriptions despite clear signs they were likely invalid, and the company allegedly pressured pharmacists to do so quickly. Walgreens compliance officials are accused of ignoring evidence that the stores were filling unlawful prescriptions and failing to provide pharmacists with important information about the opioid prescribers. Additionally, Walgreens reportedly sought payment for these invalid prescriptions through Medicare and other federal healthcare programs, violating the False Claims Act.
However, Walgreens has denied any wrongdoing, with spokesperson Fraser Engerman stating, “We strongly disagree with the government’s legal theory and admit no liability.” He added that the resolution would allow the company to close opioid-related litigation and focus on its turnaround strategy. The DOJ has agreed to dismiss its complaint in light of the settlement.
Pharmacy Industry Under Scrutiny
This settlement is part of a broader effort to hold pharmacies accountable for their role in the opioid crisis. In recent years, other major pharmacies like CVS have also faced similar lawsuits. In 2022, Walgreens and CVS collectively agreed to pay more than $10 billion in a multi-state settlement over opioid-related lawsuits.
Walgreens has also entered into an agreement with the Drug Enforcement Administration (DEA) to improve its compliance in dispensing controlled substances. This includes enhancing training for pharmacists, ensuring prescriptions are valid, and blocking illegitimate prescriptions from problematic prescribers.
Addressing the Opioid Crisis
“In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent, not facilitate, the unlawful distribution of these potentially harmful substances,” said Norbert E. Vint, Deputy Inspector General of the U.S. Office of Personnel Management.
The settlement resolves four whistleblower cases filed by former Walgreens employees and adds to the growing list of settlements addressing the opioid epidemic, which has seen more than $50 billion in settlements over the past eight years aimed at combatting the crisis.