Today, the Justice Department, alongside the Drug Enforcement Administration (DEA) and Department of Health and Human Services Office of Inspector General (HHS-OIG), announced a $300 million settlement with Walgreens Boots Alliance, Walgreen Co., and subsidiaries (collectively referred to as Walgreens). The settlement resolves allegations that the pharmacy chain illegally dispensed invalid opioid prescriptions and improperly claimed payments from Medicare and other federal health programs, violating the Controlled Substances Act (CSA) and the False Claims Act (FCA). An additional $50 million will be payable if Walgreens undergoes a transaction like a sale or merger before fiscal year 2032.
The allegations date from August 2012 to March 1, 2023. They claim Walgreens pharmacists fulfilled prescriptions—some excessive in quantity, others filled too early, or belonging to a particularly dangerous drug combination known as "trinity"—despite signals suggesting these prescriptions lacked a legitimate medical basis. Further allegations state that Walgreens pressured pharmacists to quickly fill prescriptions and shielded them from essential data regarding these prescriptions.
Following this settlement, the United States will dismiss its complaint, and Walgreens will dismiss a related action in a Texas court.
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." U.S. Attorney Kelly O. Hayes emphasized the importance of holding pharmacies accountable when they fail to ensure prescriptions are legitimate.
Deputy Assistant Attorney General Michael Granston indicated that the Justice Department would continue holding parties accountable who contribute to the opioid crisis through illegal activities. U.S. Attorney Andrew S. Boutros and his office will work with law enforcement to ensure proper dispensing of opioids and legitimate claims spending.
This settlement includes agreements between Walgreens and the DEA and HHS-OIG to improve the pharmacy’s practices. These agreements enforce compliance over the next seven years, requiring verification of prescription legality, employee training, adequate staffing, and monitoring systems for problematic prescribers.
DEA Acting Administrator Derek Maltz stated, "Pharmacies have an obligation to ensure that every prescription for highly addictive controlled substances is legitimate and issued responsibly in compliance with the Controlled Substances Act." HHS-OIG's Acting Inspector General Juliet T. Hodgkins stated that failure to comply results in squandering taxpayer dollars and risking patient safety.
The resolution of this matter also includes settlements of four whistleblower cases filed under the FCA by former Walgreens employees. The whistleblowers will receive a 17.25% portion of the recovered funds.
The legal proceedings were managed by attorneys from the Justice Department’s Civil Division and several U.S. Attorneys’ Offices across the country.
The allegations and claims against Walgreens have not resulted in any admission of liability by the company.