Walgreens To Pay Up To $350 Mln For Opioid Settlement

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(RTTNews) - Walgreens Boots Alliance and its units have agreed to pay up to $350 million as it settles with the Justice Department and other federal agencies the allegations of illegally filling unlawful opioid prescriptions and submitting false claims to the Federal Government.

In a statement, the DoJ, together with the Drug Enforcement Administration or DEA and Department of Health and Human Services Office of Inspector General or HHS-OIG announced that Walgreens Boots Alliance, Walgreen Co., and various subsidiaries will pay $300 million to resolve allegations of failing to meet its obligations when dispensing dangerous opioids and other drugs for years.

Walgreens will owe the U.S. an additional $50 million if the company is sold, merged, or transferred prior to fiscal year 2032.

Walgreens, which is in deal to be taken private by Sycamore Partners, was accused of illegally filling millions of invalid prescriptions for opioids and other controlled substances from around August 2012 through March 1, 2023 in violation of the Controlled Substances Act or CSA. The company then allegedly sought payment for many of those invalid prescriptions by Medicare and other federal health care programs in violation of the False Claims Act or FCA.

The government's complaint was filed on January 16 and amended on April 18 in the U.S. District Court for the Northern District of Illinois.

The complaint alleges that Walgreens pharmacists filled these prescriptions despite clear red flags indicating a high likelihood that the prescriptions were invalid as they lacked a legitimate medical purpose or were not issued in the usual course of professional practice.

Walgreens was also accused to have pressured its pharmacists to fill prescriptions quickly and without taking the time needed to confirm that each prescription was lawful.

Meanwhile, Walgreens spokesperson Fraser Engerman reportedly said, "We strongly disagree with the government's legal theory and admit 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."

Following the settlement, the United States has moved to dismiss its complaint. Walgreens will also move to dismiss a related declaratory judgment action filed in U.S. District Court for the Eastern District of Texas.

In addition, Walgreens has entered into agreements with DEA and HHS-OIG to address its future obligations in dispensing controlled substances.

A memorandum of agreement entered with DEA requires the company to implement and maintain certain compliance measures for the next seven years. Walgreens has also entered into a five-year Corporate Integrity Agreement with HHS-OIG, to establish and maintain a compliance program.

Attorney General Pamela Bondi said, "Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit. This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction."