Walgreens agrees to pay up to $350M in opioid prescription settlement

Walgreens has agreed to pay a maximum of $350 million to settle allegations of unlawfully filled prescriptions for addictive opioid drugs and false reimbursement claims to the federal government, the Justice Department announced on Monday. The settlement, initially set at $300 million, addresses claims that Walgreens violated the Controlled Substances Act and subsequently sought payment for unauthorized prescriptions from Medicare and other federal healthcare programs in violation of the False Claims Act. Should Walgreens be sold or merged before 2032, an additional $50 million will be owed to the United States.

Attorney General Pam Bondi emphasized that pharmacies are legally obligated to dispense controlled substances safely and professionally, rather than distributing harmful drugs solely for profit. The Department of Justice is dedicated to combating the opioid crisis and holding accountable those responsible for failing to safeguard patients from addiction.

Apart from the financial settlement, Walgreens has reached agreements with the Drug Enforcement Administration and the Department of Health and Human Services Office of Inspector General to improve their dispensing practices for controlled substances moving forward. The agreement mandates that Walgreens implement compliance measures for the next seven years, including prescription validation, enhanced training, and adequate staffing.

The government’s complaint, filed on January 16, implicated Illinois-based Walgreens Boots Alliance, Walgreen Co., and various subsidiaries. Allegations included claims that Walgreens pharmacies pressured individual pharmacists to overlook warnings and expedite prescription fulfillment without thoroughly assessing a patient’s or prescriber’s background since 2012.

Deputy Assistant Attorney General Michael Cranston of the Justice Department’s Civil Division stated that the settlement resolves accusations that Walgreens neglected its responsibilities when dispensing hazardous opioids and other medications. Acting Inspector General Juliet Hodgkins of HHS-OIG added that pharmacies that disregard their legal duties and exploit federal healthcare programs for their advantage misuse taxpayer funds and endanger patient safety.

With the recent settlement, the U.S. government has moved to dismiss its complaint against Walgreens. DEA Acting Administrator Derek Maltz underscored that pharmacies have a duty to ensure that every prescription for highly addictive controlled substances is legitimate and ethically issued in compliance with the Controlled Substances Act. Failure to fulfill this obligation, he warned, jeopardizes customer health and safety, putting the public at risk.