2 weeks Ago By Richard M. Sullivan
In a significant financial settlement, Walgreens has agreed to dish out up to $350 million to resolve allegations from the U.S. Department of Justice regarding the improper handling of prescriptions for opioids and other controlled substances, The Chicago Sun-Times has reported.
Under the terms laid down last Friday, the company will pay the government a minimum of $300 million, and this figure could increase by another $50 million if Walgreens undergoes a sale, merger, or transfer before the year 2032.Filed this January in the U.S.
District Court for the Northern District of Illinois, the government's complaint accused Walgreens of knowingly authorizing millions of illegal controlled substance prescriptions spanning from August 2012 through March 2023 which included excessive amounts of opioids and instances of refills granted much too early and although Walgreens has announced the closure of 1,200 stores amid falling store visits and decreasing market share, this payment represents a move to resolve all opioid-related litigation that the drugstore chain faces from federal, state, and local entities. Walgreens spokesperson Fraser Engerman has voiced the company's stance, "We strongly disagree with the government's legal theory and admit no liability," as noted in a statement obtained by NPR; Engerman added, "This resolution allows us to close all opioid related litigation with federal, state, and local governments and provides us with favorable terms from a cashflow perspective while we focus on our turnaround strategy"Rite Aid, another drugstore giant, grappled with a similar fate when they filed for bankruptcy at the end of 2023, also burdened by opioid lawsuit settlements. In December, CVS found itself facing a comparable lawsuit from the U.
S. Department of Justice, emphasizing the widespread nature of this issue across the pharmacy industry. The Justice Department's allegations hinge on instances where Walgreens pharmacists filled orders despite unmistakable red flags of prescription illegitimacy, and where the company pushed its pharmacists to prioritize speed, disregarding indications that could signal unlawful prescriptions were being filled.
Attorney General Pamela Bondi stressed the role of pharmacies by saying, "Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit," adding that the Justice Department "is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction," an assertive perspective reinforcing the gravity of the settlement. As part of their commitment to preventing the misuse of prescription medication, Walgreens has also reached an agreement with the Drug Enforcement Administration, to sharpen its policies and oversight with regard to prescription validation, along with cascading to a system for denying prescriber submissions that appear illegitimate, according to a quote from The Chicago Sun-Times.Additionally, Walgreens will work shoulder to shoulder with the U.
S. Department of Health and Human Services to establish a rigorous compliance program that includes regular training, board oversight, and intermittent reports on how controlled substances are being handled, to enhance safeguards against misuse as Deputy Inspector General Norbert E. Vint clarified, "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.
" On top of all these measures, the settlement puts closure to four whistleblower cases that were initiated by former Walgreens employees. This current arrangement with Walgreens adds to the more than $50 billion in settlements from drugmakers, wholesalers and pharmacies instituted over the last eight years, with the lion's share of that cash earmarked to combat the opioid crisis, another revelation noted in the NPR report..
