Walgreens Boots Alliance Inc. has entered a non-prosecution agreement with the U.S. Department of Justice. They will pay a total of at least $350 million to settle claims of illegal prescription practices concerning opioids and other controlled substances. The settlement, announced Tuesday, underscores the mounting pressure retailers’ pharmacies are coming under as part of the national opioid epidemic.
The U.S. Department of Justice accused Walgreens of filling millions of prescriptions over the past decade that were deemed unlawful. In particular, the complaint claims that Walgreens pharmacists bypassed clear as day red flags showing that these prescriptions were almost certainly fake. The settlement settles four qui tam whistleblower suits brought by former Walgreens employees who sounded the alarm on the practices that led to this settlement.
As part of the settlement, Walgreens will pay no less than $300 million to the federal government. Further, if the company is sold, merged, or transfers out before 2032, the company will be responsible for an additional $50 million in obligation. While reconciling Walgreens’ admission of no wrongdoing with its many legal defeats, the settlement highlights Walgreens’ focus on avoiding liability.
AG Bondi highlighted the responsibility pharmacies hold in protecting public health and safety.
“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit.” – Attorney General Pamela Bondi
Walgreens is currently under fire for allegedly forcing its pharmacists to dispense prescriptions at an unsafe pace. This urgency frequently took place at the cost of not allowing adequate time for thorough validation. The complaint found that Walgreens compliance officials intentionally ignored significant evidence that a large number of prescriptions it filled were illegal.
As the substance of our enforcement case, the government has provided strong evidence that Walgreens hid thousands of prescriber red flags from its pharmacists. This lack of transparency created barriers for pharmacists to accurately assess the legitimacy of prescriptions.
To address these issues and prevent future violations, Walgreens has agreed to establish a comprehensive compliance program in conjunction with the U.S. Department of Health and Human Services. The program will intentionally train staff early and often to make sure they’re prepared. It will include board of directors oversight and regular reporting to ensure compliance with legal requirements for distributing controlled substances.
Walgreens need to put in compliance measures that enforce hard line policies. These policies put undue burden on pharmacists to determine the validity of all controlled substance prescriptions. Additionally, the company will adopt an advanced prescription blocking system to prevent prescriptions from high-volume prescribers who are known to generate illegitimate prescriptions.
Norbert E. Vint, Deputy Inspector General of the U.S. Office of Personnel Management, remarked on the expectations placed on pharmacies during the ongoing opioid crisis.
“In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances.” – Norbert E. Vint
Over the last several years, Walgreens has found itself in and out of courts. This all occurs as part of a larger industry-wide fight within the pharmaceutical sector about the opioid crisis. Settlements negotiated with drug manufacturers, wholesalers and pharmacies have surpassed $50 billion over the last eight years. They agreed to these contracts with state and local governments.
Not surprisingly, this settlement is indicative of a broader trend across the industries. Retail pharmacy defendants—like Walgreens and CVS—are currently in the process of settling their remaining lawsuits related to their roles in the opioid crisis. All told, Walgreens has agreed to more than $10 billion in multi-state settlements over opioid-related lawsuits with CVS.
