Walgreens to pay $300M in settlement over invalid opioid scripts
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Walgreens Boots Alliance agreed to pay $300 million to settle a case alleging company pharmacists knowingly dispensed millions of illegal opioid prescriptions over more than a decade and billed Medicare and other federal health care programs for them.
Why it matters: The settlement will allow Walgreens to "close all opioid related litigation" with federal, state, and local governments, it told Axios in a statement Monday.
The details: The Justice Department alleged Walgreens from August 2012 through March 2023 pressured pharmacists to fill prescriptions quickly and without taking the time needed to confirm each prescription was legal.
- The included prescriptions for excessive quantities of opioids and orders for a triple-drug combination known as a "trinity" that presents increased risk of overdose and death, per the DOJ.
- The DOJ also alleged Walgreens' compliance officials ignored evidence its stores were dispensing unlawful prescriptions and "even intentionally deprived its own pharmacists of crucial information."
- It moved to dismiss its legal complaint against Walgreens as a result of the settlement.
The other side: A Walgreens spokesperson said the company "strongly disagree[d] with the government's legal theory."
- "Our pharmacists are dedicated healthcare professionals who care deeply about patient safety and continue to play a critical role in providing education and resources to help combat opioid misuse and abuse across our country," it said in a statement.
Walgreens said the settlement will provide the company with favorable terms from a cashflow perspective as it focuses on its turnaround strategy.
- The agreement calls for the full amount to be paid over six years plus 4% interest.
- Walgreens will owe the U.S. an additional $50 million if the company is sold, merged or transferred prior to fiscal year 2032.
- The company is in the midst of a deal to be acquired and taken private by private equity firm Sycamore Partners.
