Walgreens Settles Federal Opioid Case for $300 Million

Walgreens Settles Federal Opioid Case for $300 Million

Introduction

Walgreens has agreed to pay $300 million to settle allegations by U.S. prosecutors that it unlawfully filled millions of invalid prescriptions for opioids and other controlled substances.

The U.S. Department of Justice announced on Monday that the settlement resolves claims the company violated the Controlled Substances Act and the False Claims Act.

Payment Terms and Contingency Clause

Under the agreement, Walgreens will pay the $300 million over a six-year period, with an added 4% annual interest. Additionally, the company may owe an extra $50 million if it undergoes a sale, merger, or transfer before fiscal year 2032.

Company Response and Denial of Liability

Walgreens has denied any wrongdoing. "We strongly disagree with the government’s legal theory and admit no liability," said company spokesperson Fraser Engerman. He emphasized that Walgreens pharmacists are committed healthcare professionals who prioritize patient safety and are actively involved in combating opioid misuse.

Background of the Allegations

In a lawsuit filed in January, the federal government claimed that Walgreens ignored obvious signs that certain prescriptions were unlawful. Despite these “red flags,” the company allegedly filled the prescriptions and then billed federal healthcare programs such as Medicare, in violation of the False Claims Act.

Larger Context of Opioid Settlements

This settlement is part of a broader legal reckoning in the pharmaceutical industry. Walgreens is one of several major companies—including drug manufacturers and distributors—that have collectively agreed to pay around $50 billion to settle opioid-related lawsuits. In 2022, Walgreens committed to pay up to $5.52 billion over 15 years to resolve lawsuits from state and local governments.

Scope of the Opioid Epidemic

According to the U.S. Centers for Disease Control and Prevention (CDC), nearly 727,000 opioid overdose deaths occurred in the United States between 1999 and 2022.