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Highlights

  • Walgreens agrees to a $350 million settlement with the DOJ for allegedly filling millions of unlawful opioid prescriptions over a decade.

  • No admission of liability, but the settlement ends all federal, state, and local opioid-related litigation for Walgreens.

  • Compliance overhaul mandated, including pharmacist training and reporting systems to curb improper dispensing practices.

Walgreens (NASDAQ:WBA) Boots Alliance has agreed to pay up to $350 million to resolve allegations that it filled millions of unlawful prescriptions for opioids and other controlled substances over more than a decade, the U.S. Department of Justice (DOJ) announced on Friday.

The settlement marks one of the final chapters in a years-long federal investigation into the role of pharmacies in the U.S. opioid epidemic. Walgreens will pay a minimum of $300 million, with an additional $50 million due if the company is sold, merged, or transferred before 2032, according to court documents filed in the Northern District of Illinois.

The DOJ’s complaint, initially filed in January, alleged that Walgreens filled prescriptions for controlled substances between August 2012 and March 2023 despite numerous red flags indicating the prescriptions were likely invalid. These included prescriptions for excessive quantities of opioids or those filled significantly earlier than medically appropriate.

"Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit," Attorney General Pamela Bondi said. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable.”

 

The DOJ accused Walgreens of pressuring pharmacists to process prescriptions quickly and of ignoring clear evidence that some prescribers were issuing illegitimate opioid scripts. The complaint also alleged that Walgreens sought federal reimbursement through Medicare and other programs for many of these prescriptions, in violation of the False Claims Act.

As part of the settlement, Walgreens has entered into a corporate integrity agreement with the U.S. Department of Health and Human Services (HHS) and a separate compliance agreement with the Drug Enforcement Administration (DEA). These agreements require Walgreens to:

  • Maintain a robust system to flag and block invalid prescriptions,

  • Enforce policies requiring pharmacists to verify prescription validity,

  • Implement staff training, board oversight, and regular compliance reporting.

“This sends a clear message that pharmacies must uphold their gatekeeping responsibilities,” said Norbert E. Vint, Deputy Inspector General at the U.S. Office of Personnel Management.

The settlement resolves four whistleblower lawsuits filed by former Walgreens employees. It also follows previous settlements: in 2022, Walgreens and CVS agreed to pay over $10 billion collectively in a multi-state opioid litigation deal.