Walgreens resolves $595M lawsuit over COVID testing
Walgreens has agreed to pay a telemedicine company $595 million to resolve a dispute over COVID-19 testing services.
Everly Health, at the time known as PWNHealth, claimed that Walgreens breached the terms of a 2020 agreement for its telehealth providers to conduct COVID-19 tests for the pharmacy chain. Specifically, Everly was tasked with fulfilling orders for tests issued through Walgreens’ website.
According to court documents, Walgreens allegedly began bringing services in-house, including test order fulfillment, which had been contracted to Everly. The telehealth provider claims this was done without its knowledge, despite Walgreens using its branding.
While Walgreens does not admit to violating its contractual obligations, the $595 million payout brings the conflict to an end. According to court documents, Walgreens agreed to send the money within two days of it being finalized by a judge.
Everly initially fought the pharmacy in arbitration that began in 2022, with Walgreens ultimately losing and being stuck with a $988 million tab. In an appeal to a Delaware court, Walgreens argued that the amount should be capped at $79 million, citing terms in the contract. Last week, the court upheld the initial arbitration ruling.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.