Walgreens settles $300M case over illegal opioid prescriptions

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Morris Pasqual, Acting U.S. Attorney | U.S. Attorney's Office for the Northern District of Illinois

Walgreens settles $300M case over illegal opioid prescriptions

Walgreens has reached a $300 million settlement with the U.S. Department of Justice to address allegations that it violated the Controlled Substances Act and the False Claims Act. The settlement resolves claims that the pharmacy chain unlawfully filled millions of prescriptions for opioids and other controlled substances, subsequently billing these invalid prescriptions to federal healthcare programs. If Walgreens undergoes a major business change by 2032, it may owe an additional $50 million.

The case against Walgreens was filed originally on January 16 and amended on April 18 in the Northern District of Illinois. It asserts that Walgreens pharmacies filled many unlawful prescriptions, including those for excessive opioid quantities and drugs often associated with abuse, such as the "trinity" combination of three dangerous medications. According to the complaint, Walgreens pharmacists processed these prescriptions despite significant warnings that they may not have been legitimate or medically necessary.

Furthermore, the complaint alleges that Walgreens pushed its pharmacists to fill prescriptions quickly, neglecting to ensure their legitimacy. Compliance officials for Walgreens reportedly ignored evidence of unlawful dispensing and deprived pharmacists of essential information about prescribers, including potential probleml providers.

“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” stated Attorney General Pamela Bondi. Deputy Assistant Attorney General Michael Granston emphasized the importance of holding entities accountable for actions contributing to the opioid crisis.

Part of the settlement requires Walgreens to enact measures to enhance its compliance processes, such as a seven-year memorandum of agreement with the DEA, mandating compliance checks, and a Corporate Integrity Agreement with HHS-OIG for further oversight. Walgreens must also improve its prescription verification and staff training.

The settlement follows four qui tam (whistleblower) actions initiated by former Walgreens employees. As the FCA permits whistleblowers to file lawsuits on behalf of the government, these individuals will receive a percentage of the recovery from the settlement. The civil settlement represents a significant enforcement action under the Controlled Substances Act within the Northern District of Illinois.

U.S. Attorney Gregory W. Kehoe acknowledged the various law enforcement agencies’ collaborative efforts in achieving the resolution. Similarly, DEA Acting Administrator Derek Maltz reiterated the DEA's commitment to preventing unscrupulous practices prioritizing profit over safety.

The investigation benefited from assistance across multiple federal districts and agencies, including the DEA, HHS-OIG, FBI, and numerous U.S. Attorneys’ Offices. Legal representation for the U.S. included attorneys from the Justice Department’s Civil Division and several U.S. Attorneys’ Offices.

The allegations against Walgreens are not a determination of liability but part of an ongoing national effort to combat health care fraud, primarily through the mechanisms of the False Claims Act.