The federal government accused the national pharmacy chain of illegally filling millions of invalid prescriptions for opioids for at least 11 years.
Walgreens agreed to a $300 million settlement with the federal government to resolve allegations that the pharmacy chain knowingly filled millions of unlawful controlled substance prescriptions from August 2012 through March 1, 2023. The company will owe the United States as additional $50 million if it is sold, merged, or transferred prior to fiscal year 2032.
The Justice Department, along with the Drug Enforcement Administration (DEA) and Department of Health and Human Services Office of Inspector General (HHS-OIG), accused Walgreens of filling opioid prescriptions and then seeking payment for many of these invalid prescriptions from Medicare in violation of the False Claims Act.
Walgreens allegedly filled millions of unlawful controlled substance prescriptions, including excessive quantities of opioids, opioid prescriptions filled significantly early, and prescriptions for the dangerous and abused combination of three drugs known as a “trinity.” Pharmacists filled these prescriptions despite clear red flags that indicated a high likelihood the prescriptions were invalid because they lacked a legitimate medical purpose or were not issued in the usual course of professional practice.
The Department of Justice also claims Walgreens pressured its pharmacists to fill prescriptions quickly and without taking the time needed to confirm that each prescription was lawful. In addition, the government alleges Walgreens’s compliance officials ignored evidence that its stores were dispensing unlawful prescriptions and even intentionally deprived its own pharmacists of crucial information, including refusing to share internal data regarding prescribers with pharmacists and preventing pharmacists from warning one another about certain problematic prescribers.
In light of the settlement, the United States has moved to dismiss its complaint. Walgreens will also move to dismiss a related declaratory judgment action filed in U.S. District Court for the Eastern District of Texas.
“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 in an announcement. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”
In addition to the monetary settlement, Walgreens agreed to work with DEA and HHS-OIG to address how it dispenses controlled substances in the future:
- A memorandum of agreement with the DEA requires Walgreens to implement and maintain certain compliance measures for the next seven years. Walgreens must maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions prior to dispensing controlled substances, provide annual training to pharmacy employees regarding their legal obligations relating to controlled substances, verify that pharmacy staffing is sufficient to enable pharmacy employees to comply with those legal obligations and maintain a system for blocking prescriptions from prescribers whom Walgreens becomes aware are writing illegitimate controlled substance prescriptions.
- A five-year Corporate Integrity Agreement with HHS-OIG requires Walgreens to establish and maintain a compliance program that includes written policies and procedures, training, board oversight, and periodic reporting to HHS-OIG related to Walgreens’s dispensing of controlled substances.
The civil settlement resolves four cases brought under the whistleblower provisions of the False Claims Act by former Walgreens employees. The whistleblowers will receive a 17.25 percent share of the government’s False Claims Act recovery.