Walgreens Boots Alliance has agreed to pay up to $350 million to resolve federal allegations that it unlawfully filled millions of opioid prescriptions and fraudulently billed U.S. healthcare programs for them. This settlement, announced by the U.S. Department of Justice (DOJ), marks a significant milestone in ongoing efforts to hold corporations accountable for fueling the opioid epidemic.
Background: Years of Violations
According to a complaint filed by the DOJ in the Northern District of Illinois, Walgreens violated the Controlled Substances Act (CSA) and False Claims Act (FCA) from August 2012 through March 2023. The allegations state that the company knowingly filled invalid prescriptions—including dangerously high dosages, early refills, and “trinity” drug combinations—despite numerous red flags.
Federal authorities allege that Walgreens pressured pharmacists to prioritize speed over due diligence, while corporate compliance officers overlooked or actively suppressed internal warnings about problematic prescribers. Pharmacists were reportedly denied access to vital prescriber data and were prevented from warning colleagues.
Financial Terms & Compliance Commitments
The $300 million base settlement reflects Walgreens’ financial ability to pay, with an additional $50 million due if the company undergoes a sale or merger before 2032. The settlement resolves four whistleblower lawsuits filed under the FCA’s qui tam provisions by former Walgreens employees, who will collectively receive 17.25% of the recovery.
In addition to the monetary penalties, Walgreens has agreed to two key compliance agreements:
- A seven-year Memorandum of Agreement (MOA) with the Drug Enforcement Administration (DEA) mandating stricter prescription verification, staff training, and systems to block suspicious prescribers.
- A five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) requiring enhanced oversight, board-level compliance accountability, and routine reporting.
DOJ Statements & Enforcement Focus
“This settlement holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances,” said U.S. Attorney John J. Durham of the Eastern District of New York. Deputy Assistant Attorney General Michael Granston added that the Justice Department remains committed to “holding accountable those whose actions contributed to the opioid crisis,” including dispensers, marketers, and distributors.
Nationwide Coordination
The DOJ’s enforcement action involved collaboration across numerous federal agencies, including the DEA, HHS-OIG, Department of Labor, Department of Veterans Affairs, and the FBI, among others. Investigators from over a dozen U.S. Attorney’s Offices contributed to the multi-jurisdictional case.
The claims resolved by the settlement remain allegations, with no admission of liability by Walgreens. However, the scale and scope of this agreement underscore the federal government’s increasing use of civil enforcement tools like the FCA to address the public health fallout of the opioid crisis.
Sources:
- U.S. Department of Justice Press Release, April 19, 2025
- Case filings in U.S. District Court for the Northern District of Illinois
Walgreens Hawaii Picture on Flickr by Ryan Kawailani
