• Walgreens agrees to pay $300 million to settle allegations of filling invalid opioid prescriptions.
• The settlement agreement includes an additional potential $50 million payment if the company is sold.
• The U.S. DOJ claims Walgreens ignored "red flags" while dispensing controlled substances.
• The settlement resolves allegations over practices dating back to 2012, related to the opioid crisis.
• Walgreens commits to improving compliance measures over the next seven years.

Walgreens has reached a settlement agreement with the U.S. Department of Justice, agreeing to pay $300 million to resolve allegations that it unlawfully filled millions of invalid prescriptions for opioids and other controlled substances. As part of the settlement, Walgreens could owe an additional $50 million if it is sold, merged, or transferred before 2032, according to the terms outlined by the Justice Department.

The Justice Department's complaint, filed in January, accuses Walgreens of knowingly filling prescriptions for controlled substances that raised significant concerns about their validity between August 2012 and March 2023. The allegations include filling prescriptions excessively early and for large quantities, in addition to pressing pharmacists to process these prescriptions without proper evaluation. "These practices allowed millions of opioid pills and other controlled substances to flow illegally out of Walgreens stores," stated Principal Deputy Assistant Attorney General Brian M. Boynton.

In response to the allegations, Walgreens maintains, "We strongly disagree with the government’s legal theory and admit no liability," indicating that the resolution will allow them to close all opioid related litigation while focusing on their financial recovery strategy. Furthermore, the U.S. government has moved to dismiss its complaint following the settlement agreement.

The settlement facilitates the implementation of stricter compliance measures, which Walgreens is mandated to uphold for the next seven years. This includes enhancing the verification process for controlled substance prescriptions and maintaining reporting systems to prevent the dispensing of illegitimate prescriptions. U.S. Attorney General Pam Bondi emphasized the critical legal responsibility pharmacies bear in ensuring the safe distribution of medications.

The agreement comes amidst broader financial difficulties for Walgreens, which has already announced plans to close 1,200 stores due to slumping market share and pressures from online competitors, adding further economic context to the settlement's implications within the healthcare sector.