Walgreens states that he “strongly opposes government legal theory and does not accept responsibility.”
Walgreens has agreed to pay up to $350 million to resolve allegations of intentionally fulfilling millions of illegal opioids and other controlled liability prescriptions and filing false claims with the federal health program, the Department of Justice announced April 21.
According to the government, the national pharmacy chain has repeatedly dispensed prescriptions without verifying their legitimacy, including excessive amounts of prescriptions of opioids, combinations of so-called “Trinitarian” drugs commonly associated with abuse.
The DOJ said the amount was based on Walgreens’ ability to pay. Under the agreement, Walgreens will pay $300 million ($150 million each) to resolve civil claims under the CSA and FCA.
According to the revised government complaint, Walgreens pharmacists are said to have filled in invalid prescriptions even when clear warning signs were presented. In some cases, prescriptions came from providers known to write illegal scripts, and Walgreens is said to have put pressure on pharmacists to prioritize speeds for safety, while also robbing them of tools to verify the legitimacy of prescription data and internal alerts.
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In total, the US alleged that Walgreens violated the CSA from October 2013 to March 2023, and that the FCA from August 2012 to March 2023 violated the CSA.
In a statement in an email to the Epoch Times, Walgreens said it “strongly opposes government legal theory and does not accept responsibility.”
“Our pharmacists are dedicated health professionals who have a deep interest in patient safety and continue to play a key role in providing education and resources to combat opioid misuse and abuse.”
“This resolution will allow us to close all opioid-related litigation with federal, state and local governments, providing favorable terms in terms of cash flow, focusing on turnaround strategies that benefit team members, patients, customers and shareholders.”
The company did not acknowledge liability under the terms of the agreement that resolves four whistleblower cases filed by former employees, the DOJ said. Whistleblowers receive a 17.25% share of FCA-related recovery.
“This groundbreaking private settlement is the largest controlled substances law resolution in our district’s history and we once again review the priorities our office has placed on those facing off against those in charge of the opioid crisis here,” said Gregory Kehoe, the Central District of Florida, in a press release.
As part of the settlement, Walgreens has signed a seven-year memorandum with the DEA and a five-year corporate integrity agreement with the Department of Health and Human Services’ Office of Inspectors (HHS-OIG). Under this condition, Walgreens must improve compliance policies, provide staff training, monitor problem prescribers, and maintain a system that blocks illegal prescriptions.
“Importantly, the Walgreens agreement with the DEA and HHS-OIG provides prompt relief in the form of surveillance and claim reviews that immediately improve Walgreens practices. “Our office will continue to work with our law enforcement partners to ensure that opioids are properly distributed and that taxpayer funds are spent solely on legitimate pharmacy claims.”
The Civic Settlement will resolve allegations that have filed four separate lawsuits filed by whistleblowers TJ Novak, Elmer Mosley, K&V Group LLP and Patrick Awa. All cases were consolidated in federal courts in Illinois, where DOJ intervened last year.
In 2022, Walgreens agreed to pay up to $5.52 billion over 15 years to resolve thousands of claims filed by state and local governments. The Centers for Disease Control and Prevention estimates that nearly 727,000 people died from an opioid overdose in the United States between 1999 and 2022.
