Walgreens has agreed to pay $300 million to resolve allegations by the U.S. Department of Justice that the company improperly filled millions of prescriptions for opioids and other controlled substances. The settlement, announced Monday, stems from claims that Walgreens violated federal laws by ignoring warning signs and continuing to dispense potentially unlawful prescriptions.
The Justice Department stated that Walgreens will pay the $300 million over six years, with an additional 4% annual interest. The agreement also includes a clause requiring Walgreens to pay an extra $50 million if the company is sold, merged, or transferred before fiscal year 2032.
While the settlement avoids a lengthy court battle, Walgreens has not admitted to any wrongdoing. “We strongly disagree with the government’s legal theory and admit no liability,” said Walgreens spokesperson Fraser Engerman. He emphasized that the company’s pharmacists remain committed to patient safety and continue to contribute to efforts aimed at curbing opioid abuse.
The government’s lawsuit, originally filed in January, accused Walgreens of ignoring “red flags” that indicated certain prescriptions were likely illegal. It also claimed that the company violated the False Claims Act by billing federal programs like Medicare for these prescriptions.
This agreement is part of a broader legal reckoning for the pharmaceutical industry. Walgreens is one of several companies—including drug manufacturers, distributors, and other pharmacy chains—that have collectively agreed to pay more than $50 billion to settle lawsuits tied to their roles in the opioid crisis.
Previously, in 2022, Walgreens committed to paying up to $5.52 billion over 15 years to resolve thousands of state and local lawsuits related to the epidemic.
According to the CDC, nearly 727,000 opioid-related overdose deaths were recorded in the United States between 1999 and 2022, underscoring the magnitude of the crisis.
