The Justice Department, along with the Drug Enforcement Administration (DEA) and the Department of Health and Human Services Office of Inspector General (HHS-OIG), announced a settlement with Walgreens Boots Alliance and its subsidiaries amounting to $300 million. This resolves allegations that the pharmacy chain illegally filled millions of invalid opioid prescriptions and sought payment from Medicare and other federal programs, violating both the Controlled Substances Act (CSA) and the False Claims Act (FCA). Additionally, Walgreens may owe another $50 million if sold or merged before 2032.
The complaint, which was filed and later amended in the U.S. District Court for the Northern District of Illinois, alleged unlawful filling of opioid prescriptions between August 2012 and March 2023. Walgreens pharmacists allegedly dispensed prescriptions despite warning signs indicating these may not have been medically justified. The company is accused of pressuring pharmacists to overlook verification processes, ignoring evidence of illicit dispensing, and withholding crucial information from pharmacists.
Following this settlement announcement, the United States will dismiss its complaint, while Walgreens will do the same in a related case in Texas.
Attorney General Pamela Bondi emphasized, “Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit.” John J. Durham, United States Attorney for the Eastern District of New York, added, “This settlement holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances.”
Deputy Assistant Attorney General Michael Granston noted, “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis.”
Walgreens has agreed with DEA and HHS-OIG to enforce compliance measures over the next several years, including verification policies, annual training, and implementing a system to block illegitimate prescriptions. Further agreements involve a five-year Corporate Integrity Agreement with HHS-OIG to ensure comprehensive compliance programs are maintained.
This settlement resolves four cases filed under the FCA's whistleblower provisions, allowing former Walgreens employees to share in the government's recovery. In this case, the whistleblowers will receive 17.25% of the recovered amount.
The United States remains committed to addressing healthcare fraud, utilizing the FCA and encouraging tips on potential fraud through HHS.
The government’s representation in this matter involved multiple Justice Department branches and several U.S. Attorneys' Offices. The investigation was supported by several federal investigative bodies and U.S. attorneys’ offices across various districts.
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