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Walgreens has reached a settlement with federal prosecutors, agreeing to pay $300 million to resolve accusations of improperly dispensing millions of unlawful prescriptions for opioids and other controlled substances, the U.S. Department of Justice announced Monday. This resolution addresses allegations regarding the company’s role in the distribution of opioids.
Settlement Terms and Company Response
Under the terms of the agreement, Walgreens will disburse the $300 million sum, along with 4% annual interest, over a six-year period. The settlement also stipulates an additional $50 million payment to the U.S. government should Walgreens be sold, merged, or transferred before fiscal year 2032, according to the Justice Department.
Despite the settlement, Walgreens maintains its denial of wrongdoing. “We strongly disagree with the government’s legal theory and admit no liability,” stated Fraser Engerman, a Walgreens spokesperson. “Our pharmacists are dedicated healthcare professionals who prioritize patient safety and remain committed to providing education and resources to help combat opioid misuse and abuse across our country.”
Legal Actions and Opioid Crisis Context
In a filing with U.S. regulators, the company indicated it does not anticipate further significant legal cases related to opioids in the future.
Background of the Lawsuit
The government’s lawsuit, initiated in January, contended that Walgreens disregarded “red flags” indicating the illegitimacy of prescriptions and proceeded to fill them, thereby violating the Controlled Substances Act. The legal action further asserted violations of the False Claims Act, alleging that Walgreens subsequently sought reimbursement from federal healthcare programs, such as Medicare, for these prescriptions.
Wider Opioid Litigation Landscape
Walgreens is among numerous drug manufacturers, distributors, and pharmacy chains that have collectively consented to pay approximately $50 billion in recent years to settle lawsuits and investigations. These legal challenges, brought by state and local governments, accuse these entities of contributing to the deadly opioid addiction crisis in the United States.
Previous Settlements
In 2022, Walgreens committed to paying up to $5.52 billion over 15 years to resolve thousands of lawsuits from state and local governments related to the company’s role in the U.S. opioid epidemic.
Impact of the Opioid Crisis
The U.S. Centers for Disease Control and Prevention reports that almost 727,000 deaths from opioid overdoses occurred between 1999 and 2022, highlighting the devastating impact of this public health crisis.