Walgreens to Pay Up to $350 Million in Landmark Opioid Settlement

Walgreens Boots Alliance and its subsidiaries have agreed to pay up to $350 million to settle allegations of unlawfully dispensing opioids and submitting false claims to federal healthcare programs. The U.S. Department of Justice announced the civil settlement, which includes an initial $300 million payment based on the company’s ability to pay, with an additional $50 million contingent on a future merger, sale, or transfer of ownership by fiscal year 2032.

Federal authorities alleged that from August 2012 to March 2023, Walgreens filled millions of prescriptions for opioids and other controlled substances that were not legally valid. These included prescriptions for excessive amounts, those filled prematurely, and combinations known for high abuse potential. Despite clear signs that many prescriptions lacked medical legitimacy, Walgreens pharmacists were reportedly pressured to prioritize speed over due diligence, while corporate compliance officers failed to address systemic red flags.

The company allegedly restricted pharmacists’ access to key information and prohibited internal communication about questionable prescribers. In response to the government’s amended complaint, Walgreens will now implement new measures to prevent similar conduct. The company has entered into agreements with the Drug Enforcement Administration (DEA) and the Department of Health and Human Services Office of Inspector General (HHS-OIG), mandating a seven-year compliance plan that includes prescription verification, employee training, and restrictions on filling prescriptions from identified problematic prescribers.

In addition to the DEA agreement, Walgreens will operate under a five-year Corporate Integrity Agreement with HHS-OIG, requiring enhanced oversight, structured compliance programs, and regular reporting. These actions aim to prevent future violations and ensure lawful prescription practices. The settlement also resolves four whistleblower lawsuits under the False Claims Act, with the whistleblowers set to receive 17.25% of the federal recovery.

This resolution follows significant federal collaboration, involving multiple U.S. Attorneys’ Offices and investigative agencies. While Walgreens has not admitted liability, the claims reflect the government’s continuing focus on accountability amid the ongoing opioid crisis, particularly in relation to corporate conduct affecting public health and federal healthcare funding.

Article by multiple RFHC contributors, based upon information from the U.S. Attorney’s Office, District of Maryland press release

Video Spotlight