The United States Justice Department has announced a $300 million settlement with Walgreens Boots Alliance, Walgreen Co., and their subsidiaries. The agreement resolves allegations that the company illegally filled prescriptions for opioids and other controlled substances without adhering to the Controlled Substances Act. The lawsuit claims that these practices led Walgreens to submit false claims to Medicare and other federal health care programs, violating the False Claims Act. Additionally, Walgreens could potentially owe the U.S. government an extra $50 million if it undergoes a sale, merger, or transfer before fiscal year 2032.
The allegations against Walgreens date back to a complaint filed on January 16, with amendments as recent as April 18. The charges suggest that between August 2012 and March 2023, Walgreens pharmacists knowingly filled unlawfully prescribed controlled substances. The prescriptions in question included those for large quantities of opioids, early refills, and the particularly hazardous combination of three drugs known as a "trinity." Walgreens is accused of ignoring red flags indicating a high risk of invalid prescriptions.
Attorney General Pamela Bondi emphasized the legal obligation of pharmacies to dispense controlled substances responsibly, highlighting the Justice Department's dedication to addressing the opioid crisis. Deputy Assistant Attorney General Michael Granston underscored the commitment to holding accountable those contributing to the crisis, while U.S. Attorney Andrew S. Boutros confirmed continued collaboration with law enforcement to ensure proper dispensing of medications.
Moreover, Walgreens has agreed to additional terms with the DEA and HHS-OIG to improve compliance measures. This includes maintaining policies for validating prescriptions, conducting annual staff training, and blocking prescriptions from problematic prescribers. A Corporate Integrity Agreement with HHS-OIG mandates a compliance program with oversight and periodic reporting.
The settlement resolves four whistleblower lawsuits under the False Claims Act, with former Walgreens employees receiving a 17.25% share of the government's FCA recovery. The Justice Department has highlighted the role of the False Claims Act in combating healthcare fraud, encouraging reporting of suspected fraud to HHS-OIG.
Numerous agencies contributed to the investigation, including the DEA, HHS-OIG, and offices from different judicial districts. The case involved extensive inter-agency cooperation, with specialists from various branches supporting the proceedings.
The claims against Walgreens remain as allegations, with no official determination of liability.