Walgreens, a major national pharmacy chain, has reached a settlement with the government valued at up to $350 million. The agreement addresses allegations that the company unlawfully dispensed millions of opioid prescriptions and submitted false claims to federal healthcare programs. Under the terms of the settlement, Walgreens may be required to pay an additional $50 million if it is sold, merged, or transferred before the end of fiscal year 2032, according to an official statement released by the U.S. Attorney's Office.
The complaint, filed in the U.S. District Court for the Northern District of Illinois, details alleged activities from August 2012 through March 1, 2023. It claims that Walgreens pharmacists filled prescriptions that had clear "red flags," such as being for excessive quantities or being filled too early. Furthermore, officials within the company were accused of pressuring pharmacists to prioritize speed over due diligence, and In light of the settlement, the United States has moved to dismiss its complaint, as reported by the U.S. Attorney's Office.
Attorney General Pamela Bondi highlighted the importance of pharmacies prescribing controlled substances responsibly, emphasizing that "This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction." This statement was reinforced by by John J. Durham, United States Attorney for the Eastern District of New York, in the press release. He noted that the settlement "holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances."
In addition to monetary reparations, Walgreens has entered into agreements with both the DEA and HHS-OIG which mandate the implementation of stringent compliance measures. Walgreens must now maintain appropriate staffing levels and develop, a system for prescribing validation before dispensing controlled substances. They have also committed to a Corporate Integrity Agreement with the HHS-OIG that includes a compliance program with policies, training, and reporting, all designed to prevent future illicit dispensing of opioids.
The payment from Walgreens also includes a resolution to four whistleblower lawsuits under the False Claims Act (FCA), granting the relators a 17.25% share of the recovery. While the allegations brought forth hefty claims against the defendants, no determination of liability has been made. The government continues to show it is serious about tackling healthcare fraud, with the Justice Department, the DEA, HHS-OIG, and several other agencies playing pivotal roles in the investigation.
