US retailer Walgreens has consented to a $300m settlement to address claims by US prosecutors of unlawfully processing millions of invalid prescriptions for opioids and other controlled substances.
The sum, which will annually accrue 4% interest, is scheduled for payment over a six-year period as per the settlement terms, Reuters said.
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Additionally, it will be liable to pay an extra $50m to the US Government if Walgreens undergoes a sale, merger, or transfer before the fiscal year 2032.
This comes as Walgreens Boots Alliance (WBA), Walgreens’ parent company, entered a definitive agreement last month to divest to Sycamore Partners for a total of $23.7bn.
Justice Department Civil Division deputy assistant attorney general Michael Granston said: “This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs.
“We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing or distributing activities.”
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By GlobalDataThe complaint against Walgreens was initially filed on 16 January 2025 and later amended on 18 April in the US District Court for the Northern District of Illinois.
The complaint accuses the retailer of intentionally dispensing millions of unlawful controlled substance prescriptions from August 2012 through 1 March 2023.
The prescriptions in question reportedly included those with excessive amounts of opioids, those refilled prematurely, and those involving the particularly hazardous combination known as a “trinity”.
The complaint also suggests that Walgreens exerted pressure on pharmacists to expedite prescription filling without ensuring each was lawful.
A statement from Walgreens spokesperson Fraser Engerman was quoted by Reuters as saying: “We strongly disagree with the government’s legal theory and admit no liability. Our pharmacists are dedicated healthcare professionals who care deeply about patient safety and continue to play a critical role in providing education and resources to help combat opioid misuse and abuse across our country.”
In 2022, Walgreens had agreed to settle various state and local government lawsuits for up to $5.52bn over 15 years.
These lawsuits alleged that Walgreens played a role in fuelling the opioid epidemic in the US. This resulted in nearly 727,000 opioid overdose deaths from 1999 through 2022, according to the Centers for Disease Control and Prevention.
