CHICAGO, IL — Walgreens Boots Alliance has agreed to pay up to $350 million to resolve allegations it illegally filled millions of opioid prescriptions and submitted false claims to federal health care programs, federal officials announced Friday.
The $300 million settlement, led by the Department of Justice in conjunction with the DEA and HHS Office of Inspector General, resolves claims that Walgreens violated the Controlled Substances Act and the False Claims Act. An additional $50 million could be owed if Walgreens is sold, merged, or transferred before fiscal year 2032.
Federal prosecutors allege that from August 2012 through March 2023, Walgreens filled prescriptions that lacked legitimate medical purpose, including large quantities of opioids and early refills, and combinations of drugs known as the “trinity” — a cocktail often abused for its euphoric effects.
Walgreens pharmacists were allegedly pressured to fill prescriptions quickly, sometimes overlooking clear warning signs. Prosecutors said the company’s compliance officers failed to act on known issues and even blocked pharmacists from accessing critical data about high-risk prescribers.
“This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Michael Granston of the DOJ’s Civil Division.
Landmark civil settlement imposes new oversight
Walgreens also entered into agreements with both the DEA and HHS-OIG aimed at ensuring stricter compliance moving forward. Under a seven-year memorandum of agreement with the DEA, Walgreens must bolster pharmacist training, enforce prescription validation, improve staffing, and block prescriptions from known illegitimate prescribers.
In addition, a five-year Corporate Integrity Agreement with HHS-OIG mandates a compliance program with board oversight, internal reporting systems, and annual training related to the dispensing of controlled substances.
U.S. attorneys from several districts emphasized that pharmacies must take seriously their legal duties to prevent the misuse and diversion of dangerous drugs.
“This landmark civil settlement is the largest Controlled Substances Act resolution in our district’s history,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida.
Key Points
- Walgreens will pay $300 million and potentially $50 million more if sold or merged before 2032.
- The settlement addresses alleged violations of the Controlled Substances Act and False Claims Act.
- Walgreens must implement seven years of compliance measures under DEA and HHS oversight.
The settlement prompted the DOJ to move to dismiss its complaint in the Northern District of Illinois, as well as a related case in the Eastern District of Texas.
DEA Acting Administrator Derek Maltz said the agency is committed to stopping companies that prioritize profit over public safety. “When one of the nation’s largest pharmacies fails at this obligation, they jeopardize the health and safety of their customers and place the American public in danger,” he said.
A record-breaking $300 million payout brings Walgreens’s opioid reckoning into sharp focus.
