The Justice Department announced Monday that Walgreens Boots Alliance and its subsidiaries will pay $300 million to settle allegations that the company illegally filled millions of invalid prescriptions for opioids and other controlled substances over more than a decade.
The settlement, which also involved the Drug Enforcement Administration (DEA) and the Department of Health and Human Services Office of Inspector General (HHS-OIG), resolves claims that Walgreens violated the Controlled Substances Act and submitted false claims to Medicare and other federal health programs, in violation of the False Claims Act.
An additional $50 million could be added to the penalty if Walgreens is sold or transferred before fiscal year 2032.
According to court filings, the federal government alleged that from August 2012 through March 1, 2023, Walgreens pharmacies across the country filled prescriptions for dangerous and potentially addictive drugs without verifying their legitimacy.
The complaint accused Walgreens of filling prescriptions for unusually large quantities of opioids, filling prescriptions too early, and dispensing combinations of drugs known as a “trinity,” a high-risk mix prone to abuse.
Prosecutors said Walgreens pharmacists were pressured to process prescriptions quickly, and that company leaders ignored clear signs of illegal activity, including red flags suggesting prescriptions had no legitimate medical purpose.
Walgreens allegedly restricted access to internal data that would have helped pharmacists identify and prevent improper dispensing, and prohibited staff from warning one another about suspicious prescribers.
The lawsuit was initially filed in January in the U.S. District Court for the Northern District of Illinois and was amended this week.
In light of the settlement, the United States has moved to dismiss the case.
Walgreens will also seek to dismiss a related case in Texas federal court.
“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” said Attorney General Pamela Bondi.
The $300 million resolution marks one of the largest civil settlements under the Controlled Substances Act. It includes agreements with both the DEA and HHS-OIG requiring Walgreens to overhaul its compliance systems.
Under a seven-year agreement with the DEA, Walgreens must verify the legitimacy of prescriptions before dispensing, conduct annual employee training, ensure sufficient staffing, and block prescriptions from prescribers known to issue illegitimate prescriptions.
Additionally, Walgreens entered into a five-year Corporate Integrity Agreement with HHS-OIG that requires a broader compliance program, including board oversight, staff training, internal reporting, and monitoring.
Officials said the settlement would result in swift improvements in Walgreens’ practices and help protect public health.
“This landmark civil settlement is the largest Controlled Substances Act resolution in our district’s history,” said U.S. Attorney Gregory W. Kehoe of the Middle District of Florida.
The federal case also resolved four whistleblower lawsuits filed by former Walgreens employees under the False Claims Act. The whistleblowers will receive 17.25% of the federal government’s recovery as part of the settlement.
Numerous agencies assisted in the investigation, including the DEA, HHS-OIG, Defense Criminal Investigative Service, Department of Veterans Affairs OIG, and FBI field offices, as well as U.S. Attorney’s Offices across the country.
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