Walgreens, a nationwide drug retailer, has agreed to pay at least $300 million to resolve allegations that have illegally met millions of invalid controlled substance prescriptions over more than a decade.
Under the terms of the settlement, Walgreens will pay $300 million to the federal government between August 2012 and March 2023 to resolve allegations that the company violated both the Controlled Substances Act and the False Claims Act.
If Walgreens was sold, merged or transferred prior to fiscal year 2032, they borrow an additional $50 million to the United States.
“During the relevant period, Walgreens intentionally buried the prescriptions of many invalid, controlled substances that were not issued for legitimate medical purposes or both, and not for both,” the settlement states.
“Walgreens knew that such prescriptions were likely to raise serious concerns and be ineffective. However, Walgreens met many such prescriptions without resolving the important concerns raised by those prescriptions.”
The Department of Justice (DOJ) has moved to dismiss the case against Walgreens in light of the settlement agreement.
“Drugs are legally responsible for prescribing controlled substances in a safe and professional way, rather than dispensing dangerous drugs just for profit,” Attorney General Pam Bondy said in a statement.
A Walgreens spokesperson said in a statement to Hill that it acknowledged its acceptance of no liability under this agreement.
“This resolution will allow us to close all opioid-related litigation with federal, state and local governments, providing favorable terms in terms of cash flow, focusing on turnaround strategies that benefit team members, patients, customers and shareholders,” the spokesman said.
In addition to financial terms, the settlement also includes an agreement between Walgreens, the Department of Drug Enforcement and the Department of Health and Human Services, the Department of Health and Human Services, requiring that pharmacists check the effectiveness of controlled substance prescriptions before dispensing drugs in order to implement compliance measures over the next seven years.
Other major pharmacy chains have reached settlement agreements over the past year, including Kroger and ceremonial aid.
Last month, Purdue Pharma filed a new bankruptcy plan as part of a $7.4 billion settlement to resolve thousands of cases relating to the company’s alleged role in the opioid crisis after the Supreme Court rejected previous proposals last year.
