Walgreens To Pay $300M For Illegally Filling Unlawful Opioid Prescriptions, Submitting False Claims To Federal Government

Walgreens Boots Alliance (WBA) has agreed to pay $300 million to settle U.S. government allegations that it dispensed millions of improper opioid and controlled substance prescriptions, the Department of Justice announced Monday.

The payout will be made over six years, with an additional 4% annual interest. Walgreens may also owe an extra $50 million if it undergoes a merger, sale, or transfer before the end of fiscal year 2032, the DOJ said.

Federal prosecutors alleged that Walgreens violated the Controlled Substances Act by repeatedly filling prescriptions flagged as potentially unlawful.

In doing so, the pharmacy chain allegedly ignored signs of misuse and then submitted claims to federal programs, such as Medicare, thereby violating the False Claims Act.

In a filing with the Securities and Exchange Commission on Friday, Walgreens said it had settled the case without admitting wrongdoing, stating the deal was intended “to avoid the cost and uncertainty of continued litigation.” The company described the settlement as “the last anticipated major opioid regulatory matter.”

The Justice Department’s complaint, initially filed in January, is part of a broader federal crackdown on pharmaceutical companies and distributors accused of fueling the U.S. opioid crisis. Walgreens, along with other retail pharmacy chains, has faced mounting pressure over its role in dispensing high volumes of prescription painkillers over the past two decades.

Walgreens shares edged down 0.4% in Monday afternoon trading. The stock has gained 15% year-to-date but remains down more than 40% over the past 12 months.

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