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Pharmaceutical company Walgreens may settle opioid-related lawsuits in the U.S. for up to $350 million.

U.S. authorities and Walgreens have reached a settlement agreement worth up to $350 million, with allegations from the Department of Justice that the pharmacy chain illegally filled millions of prescriptions.

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Jamie ThompsonGame over for Walgreens: Chain pays $350 million in opioid settlement

The country's most popular drugstore, Walgreens, is coughing up a whopping $350 million after the U.S. Department of Justice accused them of filling millions of illegal prescriptions for opioids and other controlled substances over the last decade.

Here's the dish on this massive fine and the dirty details that led to it.

Takeaways

  • Walgreens is on the hook for a $350 million settlement for illegally filling prescriptions for opioids and other controlled substances.
  • Walgreens must pay a minimum of $300 million, with an additional $50 million if the company is sold, merged, or transferred before 2032.
  • The settlement resolves four cases brought by former Walgreens whistleblowers.

Sounds like a big problem

Walgreens had been busted for committing violations under the Controlled Substances Act (CSA) and the False Claims Act (FCA). The accusations were centered on the company's practice of filling millions of invalid prescriptions for dangerous drugs from 2012 to 2023, fueling the ongoing opioid crisis.

What exactly went down?

Walgreens allegedly filled prescriptions despite knowing they were highly likely to be invalid. They also reportedly pressured their pharmacists to zip through filling prescriptions, even when red flags were waving like crazy. The government claimed Walgreen's compliance officials ignored "substantial evidence" that their stores were filling unlawful prescriptions and hid important information on opioid prescribers from the pharmacists they employed.

In addition, Walgreens sought payment for many of the invalid prescriptions through Medicare and other federal healthcare programs - a major violation of the False Claims Act, as per the government.

Bad news for Walgreens, good news for the nation

Attorney General Pamela Bondi chirped in with this pithy statement: "Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner—not distribute drugs for profit."

The settlement resolves four cases brought by former Walgreens employee whistleblowers, who helped expose the illicit activities. In 2022, CVS and Walgreens also agreed to pay over $10 billion in a multi-state settlement following lawsuits brought against them over the toll of the opioid crisis.

Over the past eight years, drugmakers, wholesalers, and pharmacies have agreed to settle more than $50 billion worth of lawsuits with governments due to their roles in the opioid epidemic, mostly for fighting the crisis.

Looking ahead

Walgreens has apparently agreed to comply with laws and regulations regarding the dispensation of controlled substances and establish and maintain a compliance program for the U.S. Department of Health and Human Services.

As the late, great characters in Breaking Bad once said, "It's a lifestyle,," but we're guessing Walgreens is done making headlines for the wrong reasons. The company should focus on healing, because in the end, we all just want a pain-free life.

Extra Credit

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  1. The U.S. Department of Justice accused the popular drugstore chain, Walgreens, based in Seattle, of illegally filling millions of opioid and controlled substance prescriptions for over a decade, costing them a $350 million settlement.
  2. Walgreens must pay a minimum of $300 million, with an additional $50 million if the company is sold, merged, or transferred before 2032, as stated in the settlement.
  3. The settlement resolves four cases brought by former Walgreens whistleblower employees, who helped expose the illicit activities within the company.
  4. In 2022, Walgreens, along with CVS, agreed to pay over $10 billion in a multi-state settlement to address the toll of the opioid crisis.
  5. The country's ongoing battle against the opioid epidemic has resulted in drugmakers, wholesalers, and pharmacies agreeing to settle more than $50 billion worth of lawsuits with governments, mostly for their roles in fueling the crisis.
Pharmaceutical chain Walgreens agrees to pay a possible sum of $350 million in settlement with the U.S. Department of Justice, following allegations of unlawfully filling millions of prescriptions nationwide.

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