(CTN News) – Walgreens and the United States Department of Justice have reached an agreement, according to which Walgreens illegally filled millions of prescriptions for opiates and other prohibited medications over the past decade.

Walgreens has consented to pay a maximum of $350 million as part of the settlement.

The government will receive a minimum of $300 million from the national pharmacy chain, with an additional $50 million payable if the company is sold, merged, or transferred before 2032, as per the settlement that was reached on Friday last week.

At the beginning of March, Walgreens disclosed that they were contemplating a potential acquisition by the private equity firm Sycamore Partners for a total of ten billion dollars.

According to the evidence presented in the case that was submitted by the government in January to the United States District Court for the Northern District of Illinois, Walgreens is accused of intentionally filling millions of illegal prescriptions for prohibited drugs between August 2012 and March 2023.

This category encompasses prescriptions that were completed prior to their expiration date and those that contained an excessive amount of opioids.

Fraser Engerman, a spokesperson for Walgreens, said.

“We vehemently disagree with the government’s legal theory and accept no responsibility.”

“This settlement provides us with favorable terms in terms of cash flow and enables us to conclude all opioid-related lawsuits against federal, state, and local governments, thereby enabling us to focus on our turnaround strategy.”

In October of last year, Walgreens announced that it would be closing 1,200 stores nationwide due to a persistent decline in its market share and retail visits.

Rite Aid declared bankruptcy at the conclusion of 2023, attributing their decision to settlements and losses resulting from drug litigation. In December, the Department of Justice of the United States of America initiated an action against CVS that was comparable in nature.

Additionally, the lawsuit alleges that Walgreens compelled its pharmacists to expedite the filling of these prescriptions, despite the presence of clear red indicators that indicated they were likely illegitimate.

The government has accused Walgreen’s compliance officials of withholding vital information regarding opioid prescribers from pharmacists and of disregarding “substantial evidence” that their stores were processing illegal prescriptions.

The government alleges that Walgreens subsequently attempted to obtain payment for a substantial number of the fraudulent prescriptions through Medicare and other federal healthcare programs, a violation of the False Beliefs Act.

Case termination was requested following Friday’s agreement.

“Pharmacies are legally required to prescribe controlled drugs in a safe and professional manner, and they are prohibited from distributing hazardous drugs for the purpose of profit,” according to a statement released by Attorney General Pamela Bondi.

“This Department of Justice is committed to holding bad actors accountable for their failure to protect patients from addiction and to address the opioid crisis.”

Walgreens has also entered into an agreement with the Drug Enforcement Administration (DEA) to enhance its compliance with the regulations that regulate the dispensing of controlled substances.

This agreement includes the establishment of policies and procedures that necessitate pharmacist confirmation of the validity of controlled substance prescriptions, as well as the implementation of a system that prevents prescriptions from prescribers who generate illegitimate prescriptions.

Walgreens has pledged to establish and sustain a compliance program in collaboration with the United States Department of Health and Human Services. The program will encompass training, board supervision, and consistent agency reporting regarding the pharmacy’s distribution of prohibited medications.

“We depend on pharmacies to halt, not encourage, the illegal distribution of these potentially hazardous chemicals in the context of our nation’s opioid crisis,” stated Norbert E. Vint, Deputy Inspector General of the United States Office of Personnel Management, in a statement. Vint was not alluding to the fact that pharmacies are advocating the distribution of these chemicals.

Four lawsuits initiated by Walgreens whistleblowers have been resolved through this payment. CVS and Walgreens struck an agreement in 2022 to resolve opioid-related charges that had been filed against them in numerous states. The transaction was estimated to be worth $10 billion.

Over the past eight years, pharmaceutical companies, distributors, and pharmacies have entered into agreements with governments totaling more than fifty billion dollars. In order to address the opioid epidemic, the preponderance of these settlements are necessary.

SOURCE: AP