National pharmaceutical retailer Walgreens has agreed to pay at least $300 million to settle allegations it illegally fulfilled millions of invalid controlled substance prescriptions for more than a decade.
Per the terms of the settlement, Walgreens will pay the federal government $300 million to resolve allegations that the company violated both the Controlled Substances Act and the False Claims Act on numerous occasions between August 2012 and March 2023.
If Walgreens is sold, merged or transferred before fiscal 2032, then it will owe the U.S. an additional $50 million.
“During the Relevant Time Periods, Walgreens knowingly filled numerous invalid controlled-substances prescriptions that were either not issued in the usual course of professional practice, not for a legitimate medical purpose, or both,” the settlement states.
“Walgreens knew that such prescriptions raised significant concerns and were highly likely to be invalid. But Walgreens nevertheless filled numerous such prescriptions without resolving the significant concerns those prescriptions raised.”
The Department of Justice (DOJ) moved to dismiss the lawsuit against Walgreens in light of the settlement agreement.
Attorney General Pam Bondi said in a statement, “Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit.”
A Walgreens spokesperson noted in a statement to The Hill that the company is admitting no liability in this agreement.
“This resolution allows us to close all opioid-related litigation with federal, state, and local governments and provides us with favorable terms from a cashflow perspective while we focus on our turnaround strategy that will benefit our team members, patients, customers, and shareholders,” the spokesperson said.
Along with the financial terms, the settlement also includes an agreement between Walgreens, the Drug Enforcement Administration and the Department of Health and Human Services Office of Inspector General for the pharmacy retailer to implement compliance measures for the next seven years, requiring pharmacists to confirm the validity of controlled substance prescriptions before dispensing drugs.
Other major pharmacy chains have reached settlement agreements in the past year, including Kroger Co. and Rite Aid.
Last month, Purdue Pharma filed a new bankruptcy plan as part of a $7.4 billion settlement to resolve thousands of lawsuits over the company’s alleged role in the opioid crisis, after the Supreme Court rejected an earlier proposal last year.
