Today, the Justice Department, along with the Drug Enforcement Administration (DEA) and the Department of Health and Human Services Office of Inspector General (HHS-OIG), announced a settlement with Walgreens Boots Alliance, Walgreen Co., and various subsidiaries, collectively known as Walgreens. The agreement involves a payment of $300 million to address accusations of unlawfully filling invalid prescriptions for opioids and other controlled substances, contravening the Controlled Substances Act (CSA), and submitting false claims for payment to federal health care programs, violating the False Claims Act (FCA). An additional $50 million will be owed if Walgreens undergoes any major changes like a sale or merger before fiscal year 2032.
The complaint filed by the government alleges that, from August 2012 to March 2023, Walgreens knowingly filled millions of unlawful controlled substance prescriptions, including excessive opioid amounts, early refills, and a potent combination known as "trinity." The pharmacists are said to have filled these prescriptions despite red flags signaling a lack of legitimate medical purpose. Furthermore, Walgreens allegedly pressured pharmacists to hasten prescription fills without confirming their legality and withheld critical information from them.
Following the announced settlement, the U.S. has proposed to dismiss its complaint against Walgreens, who will similarly request the dismissal of a related legal action in Texas.
Attorney General Pamela Bondi said, "Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit."
U.S. Attorney Kelly O. Hayes referenced the duty of pharmacies in verifying every prescription's legitimacy. Similar sentiments were echoed by Deputy Assistant Attorney General Michael Granston and U.S. Attorney Andrew S. Boutros, who emphasized Walgreens' obligations and the importance of accountable practices to combat the opioid crisis.
Commenting on the regulatory and oversight measures accompanying the settlement, DEA Acting Administrator Derek Maltz stressed the importance of compliance to safeguard public health. Acting Inspector General Juliet T. Hodgkins and Deputy Inspector General Norbert E. Vint affirmed support for these measures, ensuring oversight and protection for federally-funded healthcare foundations.
The settlement, one of the largest in district history, is meant to resolve claims brought under the FCA’s whistleblower provisions. The whistleblowers in this case will receive a 17.25% share of the government’s financial recovery.
This resolution reflects the government's commitment to addressing healthcare fraud and the opioid crisis. It underscores the continued use of the FCA as a tool in these efforts. The investigation was assisted by various federal bodies, including DEA, HHS-OIG, and several U.S. Attorneys' Offices, with legal representation from the Justice Department’s Civil Division and other regional offices.
The claims are considered allegations only, with no determination of liability. Further details about consumer protection and fraud enforcement efforts can be found on the relevant government websites. Information about involved federal agencies and their initiatives against opioid and healthcare fraud is also available online.
For more information, the public can refer to official websites of the agencies and U.S. Attorneys' Offices involved.
