Walgreens settles DOJ opioid crisis case for $300M

Walgreens has settled allegations brought by the U.S. Department of Justice (DOJ) that it illegally filled millions of prescriptions, specifically for opioids and other controlled substances.

The struggling pharmacy chain has agreed to pay $300 million to resolve the case, with the DOJ noting in an announcement that the figure is based on Walgreens' current ability to pay. However, if and when the company is sold, it has agreed to pay an additional $50 million.

Those terms remain in effect until 2032, the DOJ said. The company is already in final negotiations to be sold to Sycamore Partners, a private equity firm focused on retail businesses. That deal, valued at $10 billion, is pending regulatory approval.

Once finalized, Walgreens will become a private company.

The case with the DOJ was pending before the buyout was announced. Walgreens was accused of encouraging pharmacists to fill invalid prescriptions, many of which were then billed to Medicaid, Medicare and other forms of insurance.

According to authorities, between August 2012 and March 2023, Walgreens knowingly filled “millions of unlawful controlled substance prescriptions,” which in part fueled the nation’s opioid epidemic. The pharmacy chain—and consequently its pharmacists—was accused of ignoring “clear red flags indicating a high likelihood that the prescriptions were invalid because they lacked a legitimate medical purpose or were not issued in the usual course of professional practice.”

Federal prosecutors said Walgreens executives pressured pharmacists to fill prescriptions for excessive quantities of opioids and other addictive substances, including prescriptions for the especially dangerous and widely abused combination of three drugs known as the “trinity.”

“Strict compliance with the law is essential to safeguarding the public, who rely on carefully considered and limited prescriptions for their health and well-being,” U.S. Attorney Erik S. Siebert for the Eastern District of Virginia said in a statement. “Those companies and individuals authorized to provide controlled substances have a professional responsibility to ensure that the prescriptions they fill are within the course of professional practice and regulations.”

“Medically unnecessary prescriptions are a cost ultimately borne by the taxpayers and consumers. As we continue to address the opioid crisis here in Virginia and across the nation, we are determined to ensure pharmacies and pharmacists operate within the law,” he added.

The settlement was announced on Monday and resolves allegations brought by multiple federal agencies, including the Drug Enforcement Administration (DEA).

No liability

Walgreens does not admit to wrongdoing. However, it has settled multiple opioid-related lawsuits in the past year. In September 2024, the DOJ reached a settlement in a separate claim against the pharmacy, resolving fraud allegations for $107 million.

Walgreens also settled with the City of Baltimore, which alleged its pharmacies contributed to the metro area's opioid crisis. That case reportedly cost the company $80 million.

Its stock remained steady at around $10.87, despite the $300 million payout.