Walgreens Reaches $350 Million Settlement Over Opioid Prescription Allegations
Walgreens has agreed to pay up to $350 million to resolve allegations by the U.S. Department of Justice that it filled millions of unlawful opioid prescriptions over the course of a decade.
The nationwide pharmacy chain will pay at least $300 million to the federal government, with an additional $50 million due if the company is sold, merged, or transferred before 2032, according to the settlement finalized last Friday.
Federal prosecutors had accused Walgreens of violating the Controlled Substances Act by dispensing prescriptions flagged as likely illegitimate between August 2012 and March 2023. The Justice Department also alleged the company sought reimbursement for many of these prescriptions through Medicare and other federal healthcare programs, a potential breach 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 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 court filings, Walgreens pharmacists routinely filled opioid prescriptions that raised clear warning signs, including excessive quantities or refill requests made significantly ahead of schedule. The DOJ claimed that company officials ignored compliance concerns and discouraged thorough reviews in favor of speed and profit.
Despite agreeing to the settlement, Walgreens has denied wrongdoing. “We strongly disagree with the government’s legal theory and admit no liability,” said company spokesperson Fraser Engerman. “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 settlement also includes a compliance agreement with the Drug Enforcement Administration (DEA), requiring Walgreens to improve oversight of controlled substance dispensing, train staff, and implement a system to block prescriptions from high-risk prescribers. The company also agreed to enhanced reporting and compliance measures with the Department of Health and Human Services.
The Justice Department has now moved to dismiss its formal complaint following the agreement.
This settlement resolves four whistleblower lawsuits brought by former Walgreens employees. It comes amid broader legal pressure on the pharmaceutical industry, which has seen more than $50 billion in opioid-related settlements over the past eight years. Most of that money is earmarked for addiction treatment and prevention.
In 2022, both Walgreens and CVS agreed to pay a combined $10 billion in a multi-state settlement over their roles in the opioid epidemic.
