Walgreens agrees to pay at least $300 million in opioid settlement
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Walgreens has agreed to pay up to $350 million in a settlement with the U.S. Justice Department after allegations that the pharmacy chain illegally filled millions of invalid prescriptions for opioids and other controlled substances.
Filed early this year, the complaint that led to the settlement accused Walgreens of filling prescriptions for opioids too early and in excess quantities, and dispensing a combination of three drugs known to be commonly abused.
Walgreens pharmacists ignored red flags that the prescriptions were invalid or lacked a medical purpose, the complaint said. The complaint also alleged that Walgreens pressured its pharmacists to fill prescriptions quickly without confirming their legitimacy.
Walgreens sought payment for many of the invalid prescriptions through Medicare and other federal healthcare programs in violation of the False Claims Act, according to the government’s case against the company.
“We strongly disagree with the government’s legal theory and admit no liability,” Walgreens spokesperson Fraser Engerman said in an email to The Times. “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.”
CVS is cutting costs, Rite Aid’s shelves are empty and Walgreens is closing stores as retail pharmacies across Los Angeles and the country face a challenging retail environment and pressure from insurance company intermediaries.
The settlement comes during a period of instability for the chain, which announced plans to close 1,200 stores last October. The company has cut costs amid inflation, pressure from online competition and lower margins on prescriptions.
The settlement amount is based on Walgreens’ ability to pay, the Justice Department said in its announcement. The company owes the U.S. at least $300 million and will pay an additional $50 million if it is sold, merged or transferred before fiscal year 2032.
The Justice Department, along with the Drug Enforcement Administration and the Department of Health and Human Services Office of Inspector General, accused the pharmacy of knowingly processing millions of unlawful controlled substance prescriptions between August 2012 and March 2023.
“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” U.S. Atty. Gen. Pam Bondi said. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”
The U.S. has moved to dismiss its complaint in response to the settlement agreement.
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