Walgreens, the nation’s second-largest pharmacy chain, will pay $300 million plus 4 percent interest to settle Department of Justice allegations of improper dispensing practices as well as fraud. While the DOJ had not claimed Walgreens was liable in the opioid-involved overdose crisis outright, it had claimed the company “caused severe and concrete harm.” The DOJ announced the settlement April 21, a few days after filing it in the United States District Court for the Northern District of Illinois.
If Walgreens is sold or otherwise absorbed by a different company before the end of Fiscal Year 2031, it will owe an additional $50 million. The settlement comes a few weeks after Walgreens, which has seen its stock value nosedive by about 80 percent in the past five years, confirmed that by the end of 2025 it would be acquired by private equity group Sycamore Partners. The DOJ stated that the $300 million figure was determined based on the company’s ability to pay.
Its first payment of $20 million is due in May, with the full settlement due within the next six years. The allegations stem from what were originally four separate whistleblower lawsuits filed by former Walgreens employees, who will be collectively awarded about $4.25 million.
In January, the DOJ sued Walgreens for allegedly violating the Controlled Substances Act as well as the False Claims Act. The allegations that pertained to the CSA centered on Walgreens filling prescriptions that it knew were either invalid or...
In This Article: WBA +0.78% Walgreens agreed to pay the United States $300M, plus interest at a rate of 4.00% per annum accruing from October 20, 2024, of which $150M shall constitute restitutio...