Latest news with #FraserEngerman
The Guardian
22-04-2025
- Business
- The Guardian
Walgreens agrees to pay US up to $350m for illegally filling opioid prescriptions
Walgreens has agreed to pay up to $350m to settle claims by the US justice department that it illegally filled millions of prescriptions for opioids and other controlled substances. The country's largest drugstore chain must pay the government $300m, plus an additional $50m if the corporation is sold, transferred or merged before 2032, according to the terms of the settlement reached on Friday. The justice department first filed a complaint against Walgreens Boots Alliance, collectively known as Walgreens, in January. They alleged that the corporation dispensed millions of unlawful prescriptions and later sought reimbursement for said substances through Medicare and other federal healthcare programs, a violation of the False Claims Act. The complaint also accused Walgreens of 'systematically pressured its pharmacists to fill prescriptions, including controlled substance prescriptions, without taking the time needed to confirm their validity'. This practice allegedly continued for more than a decade, between August 2012 and March 2023. 'These practices allowed millions of opioid pills and other controlled substances to flow illegally out of Walgreens stores,' the statement added. The prescriptions included substances such as opioids and 'trinity', referring to the often abused combination of opioids, benzodiazepine and muscle relaxants. 'This lawsuit seeks to hold Walgreens accountable for the many years that it failed to meet its obligations when dispensing dangerous opioids and other drugs,' said former principal deputy assistant attorney general Brian M Boynton, head of the justice department's civil division, in a statement. Walgreens spokesperson Fraser Engerman said in a statement to the Guardian that the company 'strongly [disagrees] with the government's legal theory and admit no liability'. Sign up to Headlines US Get the most important US headlines and highlights emailed direct to you every morning after newsletter promotion 'This resolution allows us to close all opioid related litigation with federal, state, and local governments and provides us with favorable terms from a cashflow perspective while we focus on our turnaround strategy,' Engerman said.
American Military News
22-04-2025
- Business
- American Military News
Walgreens to pay $300M to settle with Department of Justice over opioid allegations
Walgreens Boots Alliance has agreed to pay $300 million to settle allegations that it filled millions of invalid prescriptions for opioids and other controlled substances and illegally billed federal programs such as Medicare for those medications, the U.S. Department of Justice announced Monday. The federal government had alleged that Deerfield, Illinois-based Walgreens filled prescriptions with 'egregious red flags,' according to an amended complaint filed last week in U.S. District Court for the Northern District of Illinois. The government alleged that Walgreens filled prescriptions with high dosages of opioids, filled prescriptions for the drugs too early, and filled prescriptions for a dangerous combination of three drugs, from late 2013 to early 2023, according to the complaint. The government had alleged that Walgreens pressured its pharmacists to fill the prescriptions quickly, without giving them time to check if the prescriptions were valid. The government also alleged that Walgreens submitted the invalid prescriptions to federal health insurance programs, including Medicare for reimbursement, in violation of the federal False Claims Act. 'Walgreens knowingly filled numerous invalid controlled-substances prescriptions that were either not issued in the usual course of professional practice, not for a legitimate medical purpose, or both,' the government had alleged, according to the settlement agreement. 'Walgreens knew that such prescriptions raised significant concerns and were highly likely to be invalid. But Walgreens nevertheless filled numerous such prescriptions without resolving the significant concerns those prescriptions raised.' Walgreens has denied the allegations. The settlement agreement does not include any admission of wrongdoing or liability by Walgreens. 'We strongly disagree with the government's legal theory and admit no liability,' said Walgreens spokesperson Fraser Engerman in a statement Monday. 'Our pharmacists are dedicated healthcare professionals who care deeply about patient safety and continue to play a critical role in providing education and resources to help combat opioid misuse and abuse across our country.' Engerman said the settlement allows 'Walgreens to close all opioid related litigation with federal, state, and local governments and provides us with favorable terms from a cashflow perspective while we focus on our turnaround strategy that will benefit our team members, patients, customers, and shareholders.' As part of the settlement, Walgreens will also have to pay interest on the money, and it will have to pay an additional $50 million if the company is sold or merges with another company before fiscal year 2032. Walgreens announced last month that it had agreed to be sold to a private equity firm in a deal expected to close in the fourth quarter of the year. That sale announcement followed years of financial struggles for the retail pharmacy giant, which has been grappling with changing consumer habits, challenges related to medication reimbursement and a ill fated foray into primary care. As part of the settlement agreement, Walgreens must also maintain policies and procedures requiring pharmacists to make sure controlled substances are valid before filling prescriptions for them, among other requirements. U.S. Attorney General Pamela Bondi said in a news release Monday, 'Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit.' The allegations against Walgreens were originally brought by whistleblowers who were former Walgreens employees, with the first of the whistleblowers filing a lawsuit in 2018. The U.S. Department of Justice intervened in the consolidated cases in August. The federal False Claims Act allows whistleblowers to sue on behalf of the U.S. government and receive a share of any money recovered. The four whistleblowers will receive 17.25% of the settlement money, according to the Department of Justice. The settlement announcement comes less than two months after Walgreens said it had agreed to pay a separate, $595 million settlement to a virtual care company over a dispute involving COVID-19 testing. ___ © 2025 Chicago Tribune. Distributed by Tribune Content Agency, LLC.
Yahoo
22-04-2025
- Business
- Yahoo
Walgreens to pay up to $350 million in US opioid settlement
Walgreens has agreed to pay up to $350 million in a settlement with the U.S. Department of Justice, who accused the pharmacy of illegally filling millions of prescriptions in the last decade for opioids and other controlled substances. The nationwide drugstore chain must pay the government at least $300 million and will owe another $50 million if the company is sold, merged, or transferred before 2032, according to the settlement reached last Friday. RELATED: Purdue Pharma and owners to pay $7.4B in settlement of lawsuits over the toll of OxyContin The government's complaint, filed in January in the U.S. District Court for the Northern District of Illinois, alleges that Walgreens knowingly filled millions of illegal prescriptions for controlled substances between August 2012 and March 2023. These include prescriptions for excessive opioids and prescriptions filled significantly early. 'We strongly disagree with the government's legal theory and admit no liability,' Walgreens spokesperson Fraser Engerman said in a statement. 'This resolution allows us to close all opioid related litigation with federal, state, and local governments and provides us with favorable terms from a cashflow perspective while we focus on our turnaround strategy.' Amid slumping store visits and shrinking market share, Walgreens announced it was closing 1,200 stores around the country last October. Rite Aid filed for bankruptcy at the end of 2023 as it was also dealing with losses and opioid lawsuit settlements. The U.S. Department of Justice filed a similar lawsuit against CVS in December. The complaint says Walgreens pharmacists filled these prescriptions despite clear red flags that the prescriptions were highly likely to be invalid, and the company pressured its pharmacists to fill them quickly. The government alleges Walgreen's compliance officials ignored 'substantial evidence' that its stores were filling unlawful prescriptions and withheld important information on opioid prescribers from its pharmacists. MORE: RI to receive $56M from CVS, Walgreens, Walmart in latest opioid settlement Walgreens then allegedly sought payment for many of the invalid prescriptions through Medicare and other federal healthcare programs in violation of the False Claims Act, according to the government. The U.S. Justice Department has moved to dismiss its complaint in light of Friday's settlement. 'Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,' said Attorney General Pamela Bondi in a statement. 'This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.' Walgreen has also entered into an agreement with the Drug Enforcement Administration to improve its compliance with rules around dispensing controlled substances, maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions, and maintain a system for blocking prescriptions from prescribers that are producing illegitimate prescriptions. With the U.S. Department of Health and Human Services, Walgreen has agreed to establish and maintain a compliance program that includes training, board oversight, and periodic reporting to the agency regarding the pharmacy's dispensing of controlled substances. SEE ALSO: RI secures $1.5M opioid settlement from health care ad firm 'In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances,' said Norbert E. Vint, Deputy Inspector General of the U.S. Office of Personnel Management, in a statement. The settlement resolves four cases brought by former Walgreens employee whistleblowers. In 2022, CVS and Walgreens agreed to pay more than $10 billion in a multi-state settlement of lawsuits brought against them over the toll of the opioid crisis. Over the past eight years, drugmakers, wholesalers and pharmacies have agreed to more than $50 billion worth of settlements with governments — with most of the money required to be used to fight the opioid crisis. NEXT: CVS hit with lawsuit, accused of unlawfully filling opioid prescriptions Download the and apps to get breaking news and weather alerts. Watch or with the new . Follow us on social media: Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
CNN
22-04-2025
- Business
- CNN
Walgreens to pay up to $350 million in U.S. opioid settlement
Walgreens has agreed to pay up to $350 million in a settlement with the US Department of Justice, who accused the pharmacy of illegally filling millions of prescriptions in the last decade for opioids and other controlled substances. The nationwide drugstore chain must pay the government at least $300 million and will owe another $50 million if the company is sold, merged or transferred before 2032, according to the settlement reached last Friday. The government's complaint, filed in January in the US District Court for the Northern District of Illinois, alleges that Walgreens knowingly filled millions of illegal prescriptions for controlled substances between August 2012 and March 2023. These include prescriptions for excessive opioids and prescriptions filled significantly early. 'We strongly disagree with the government's legal theory and admit no liability,' Walgreens spokesperson Fraser Engerman said in a statement. 'This resolution allows us to close all opioid related litigation with federal, state, and local governments and provides us with favorable terms from a cashflow perspective while we focus on our turnaround strategy.' Amid slumping store visits and shrinking market share, Walgreens announced it was closing 1,200 stores around the country last October. Rite Aid filed for bankruptcy at the end of 2023 as it was also dealing with losses and opioid lawsuit settlements. The US Department of Justice filed a similar lawsuit against CVS in December. The complaint says Walgreens pharmacists filled these prescriptions despite clear red flags that the prescriptions were highly likely to be invalid, and the company pressured its pharmacists to fill them quickly. The government alleges Walgreen's compliance officials ignored 'substantial evidence' that its stores were filling unlawful prescriptions and withheld important information on opioid prescribers from its pharmacists. Walgreens then allegedly sought payment for many of the invalid prescriptions through Medicare and other federal healthcare programs in violation of the False Claims Act, according to the government. The US Justice Department has moved to dismiss its complaint in light of Friday's settlement. 'Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,' said Attorney General Pamela Bondi in a statement. 'This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.' Walgreen has also entered into an agreement with the Drug Enforcement Administration to improve its compliance with rules around dispensing controlled substances, maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions, and maintain a system for blocking prescriptions from prescribers that are producing illegitimate prescriptions. With the US Department of Health and Human Services, Walgreen has agreed to establish and maintain a compliance program that includes training, board oversight, and periodic reporting to the agency regarding the pharmacy's dispensing of controlled substances. 'In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances,' said Norbert E. Vint, Deputy Inspector General of the US Office of Personnel Management, in a statement. The settlement resolves four cases brought by former Walgreens employee whistleblowers. In 2022, CVS and Walgreens agreed to pay more than $10 billion in a multi-state settlement of lawsuits brought against them over the toll of the opioid crisis. Over the past eight years, drugmakers, wholesalers and pharmacies have agreed to more than $50 billion worth of settlements with governments — with most of the money required to be used to fight the opioid crisis.
Yahoo
22-04-2025
- Business
- Yahoo
Walgreens to pay up to $350 million in U.S. opioid settlement
Walgreens has agreed to pay up to $350 million in a settlement with the U.S. Department of Justice, who accused the pharmacy of illegally filling millions of prescriptions in the last decade for opioids and other controlled substances. The nationwide drugstore chain must pay the government at least $300 million and will owe another $50 million if the company is sold, merged, or transferred before 2032, according to the settlement reached last Friday. The government's complaint, filed in January in the U.S. District Court for the Northern District of Illinois, alleges that Walgreens knowingly filled millions of illegal prescriptions for controlled substances between August 2012 and March 2023. These include prescriptions for excessive opioids and prescriptions filled significantly early. 'We strongly disagree with the government's legal theory and admit no liability,' Walgreens spokesperson Fraser Engerman said in a statement. 'This resolution allows us to close all opioid related litigation with federal, state, and local governments and provides us with favorable terms from a cashflow perspective while we focus on our turnaround strategy.' Amid slumping store visits and shrinking market share, Walgreens announced it was closing 1,200 stores around the country last October. Rite Aid filed for bankruptcy at the end of 2023 as it was also dealing with losses and opioid lawsuit settlements. The U.S. Department of Justice filed a similar lawsuit against CVS in December. The complaint says Walgreens pharmacists filled these prescriptions despite clear red flags that the prescriptions were highly likely to be invalid, and the company pressured its pharmacists to fill them quickly. The government alleges Walgreen's compliance officials ignored 'substantial evidence' that its stores were filling unlawful prescriptions and withheld important information on opioid prescribers from its pharmacists. Walgreens then allegedly sought payment for many of the invalid prescriptions through Medicare and other federal healthcare programs in violation of the False Claims Act, according to the government. The U.S. Justice Department has moved to dismiss its complaint in light of Friday's settlement. 'Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,' said Attorney General Pamela Bondi in a statement. 'This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.' Walgreen has also entered into an agreement with the Drug Enforcement Administration to improve its compliance with rules around dispensing controlled substances, maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions, and maintain a system for blocking prescriptions from prescribers that are producing illegitimate prescriptions. With the U.S. Department of Health and Human Services, Walgreen has agreed to establish and maintain a compliance program that includes training, board oversight, and periodic reporting to the agency regarding the pharmacy's dispensing of controlled substances. 'In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances,' said Norbert E. Vint, Deputy Inspector General of the U.S. Office of Personnel Management, in a statement. The settlement resolves four cases brought by former Walgreens employee whistleblowers. In 2022, CVS and Walgreens agreed to pay more than $10 billion in a multi-state settlement of lawsuits brought against them over the toll of the opioid crisis. Over the past eight years, drugmakers, wholesalers and pharmacies have agreed to more than $50 billion worth of settlements with governments — with most of the money required to be used to fight the opioid crisis.
