Walgreens received another big bill to pay—$300 million this time.
The retail pharmacy giant was accused in January of illegally filling “millions” of prescriptions for opioids and other controlled substances from August 2012 through March 2023, in violation of the Controlled Substances Act.
Now it owes a hefty sum after reaching a settlement with the Justice Department, the Drug Enforcement Administration, and the Department of Health and Human Services Office of Inspector General. In a statement on April 21, the federal agencies alleged Walgreens had also asked for Medicare payments for some of the dispensed opioid prescriptions, which would violate the False Claims Act.
While opioid deaths are on the decline (down 24% from 114,000 to 87,000 between October 2023 and September 2024, according to the CDC), the drugs killed 727,000 people from 1999–2022, the CDC also reported.
The details. In the suit, the government agencies accused Walgreens of filling prescriptions for controlled substances “despite clear red flags” they weren’t legitimate.
They also alleged Walgreens pressured staff to fill prescriptions quickly, therefore not giving staff time to make sure they were legal.
“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” US Attorney General Pamela Bondi said in a release.
Busy year. According to the settlement agreement, Walgreens will have to pay an additional $50 million if it’s sold, merged, or transferred before FY 2032.
The settlement comes after Walgreen’s announced it would be acquired by private equity firm Sycamore Partners after years of weak earnings and challenges for retail pharmacies overall.
Fraser Engerman, senior director of media relations and issues management at Walgreens, told Healthcare Brew in a statement that the company “strongly disagree[s] with the government’s legal theory and admit[s] no liability.”
“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,” he added.
Neither the federal government nor Walgreens mentioned the looming sale to Sycamore.
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