Walgreens has agreed to pay $300 million to settle U.S. prosecutors’ allegations that it illegally filled millions of invalid prescriptions for opioids and other controlled substances, the U.S. Justice Department said on Monday.
The money, plus 4% interest annually, will be paid out over six years under the terms of the agreement. Walgreens will also owe the U.S. an additional $50 million if the company is sold, merged, or transferred prior to fiscal year 2032, the Justice Department said.
“We strongly disagree with the government’s legal theory and admit no liability,” Walgreens spokesperson Fraser Engerman said in a statement. “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.”
The company said in a filing with U.S. regulators that it did not expect any major cases over opioids in the future.
The government’s January lawsuit alleged Walgreens ignored “red flags” that prescriptions were illegal and filled them anyway, violating the Controlled Substances Act. The government also alleged it violated the False Claims Act when it then sought reimbursement from federal health care programs, like Medicare, for the prescriptions.
Walgreens is among the drug manufacturers, distributors, pharmacy operators and others who have collectively in recent years agreed to pay about $50 billion to resolve lawsuits and investigations by states and local governments accusing them of helping fuel a deadly opioid addiction epidemic in the U.S.
Walgreens in 2022 agreed to pay up to $5.52 billion over 15 years to resolve thousands of lawsuits by state and local governments accusing the company of fueling the U.S. opioid epidemic.
The U.S. Centers for Disease Control and Prevention says nearly 727,000 opioid overdose deaths occurred from 1999 to 2022.
