Walgreens has agreed to pay up to $350 million to resolve allegations by the U.S. Department of Justice that it illegally filled millions of prescriptions for opioids and other controlled substances over more than a decade. The agreement, announced Friday, includes a $300 million baseline payment, with an additional $50 million due if the company is sold, merged, or transferred before 2032.
The complaint, filed in January in the U.S. District Court for the Northern District of Illinois, alleges that from August 2012 through March 2023, Walgreens knowingly filled prescriptions that exhibited glaring red flags-such as excessive opioid quantities or early refills-and then submitted them for payment through Medicare and other federal programs, in violation of the False Claims Act.
"Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit," said U.S. Attorney General Pamela Bondi. "This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction."
According to federal officials, Walgreens pharmacists were pressured to fill prescriptions rapidly despite obvious indications of impropriety. Compliance officers at the corporate level allegedly ignored substantial evidence that stores were engaging in unlawful activity and withheld critical information from pharmacists regarding suspect prescribers.
The company did not admit liability in the settlement. "We strongly disagree with the government's legal theory and admit no liability," Walgreens spokesperson Fraser Engerman said. "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."
The deal also requires Walgreens to enter agreements with the Drug Enforcement Administration and the Department of Health and Human Services to enhance oversight and implement new compliance measures. The terms mandate policies requiring pharmacists to validate prescriptions, mechanisms to block suspect prescribers, and programs for regular reporting and board-level oversight.
"In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances," said Norbert E. Vint, Deputy Inspector General of the U.S. Office of Personnel Management.
The settlement resolves four lawsuits brought by former Walgreens employees who acted as whistleblowers. It comes amid a broader legal reckoning for pharmacy chains. In 2022, Walgreens and CVS agreed to pay more than $10 billion in multistate opioid settlements. The Justice Department filed a similar suit against CVS in December.
Walgreens' legal challenges coincide with declining store traffic and mounting financial pressure. Last October, the company announced plans to close 1,200 stores. Rite Aid filed for bankruptcy in 2023, also citing mounting liabilities from opioid-related litigation.
