Walgreens will pay $300 million to settle federal allegations that it illegally filled millions of invalid prescriptions for opioids and other controlled substances, the Department of Justice announced on Monday. The company then sought payment for many of those prescriptions from Medicare and other federal health care programs in violation of the False Claims Act, the announcement said.

“This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Michael Granston, deputy assistant attorney in the agency’s civil division. “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing or distributing activities.”

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The government’s complaint, filed in January, alleged that the unlawful prescriptions included excessive quantities of opioids, opioid prescriptions filled significantly early and prescriptions for the especially dangerous and abused combination of three drugs known as a “trinity.” Walgreens pharmacists allegedly filled these prescriptions despite clear red flags indicating a high likelihood that the prescriptions were invalid, because they lacked a legitimate medical purpose or were not issued in the usual course of professional practice.

The complaint further alleged that Walgreens pressured its pharmacists to fill prescriptions quickly and without taking the necessary time to confirm that each prescription was lawful. Walgreens’s compliance officials also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions and intentionally deprived its own pharmacists of crucial information. This included refusing to share internal data regarding prescribers with pharmacists and preventing pharmacists from warning each other about certain problematic prescribers.

The civil settlement resolves four cases brought by former Walgreens employees under the whistleblower provisions of the False Claims Act. The act authorizes whistleblowers to sue on behalf of the United States and receive a share of any recovery. It also permits the federal government to intervene and take over such lawsuits, as it did here. 

The settlement amount is based on Walgreens’s ability to pay. The company will owe the United States an additional $50 million if the company is sold, merged or transferred before fiscal year 2032.

“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” Attorney General Pamela Bondi said. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”

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Alan Goforth

Alan Goforth is a freelance writer in suburban Kansas City. In addition to freelancing for several publications, he has written a dozen books about sports and other topics.