Chicago, Illinois – Walgreens, a nationwide drugstore chain, has agreed to a settlement with the US Department of Justice worth up to $350 million. The settlement comes after accusations that the pharmacy illegally filled millions of prescriptions for opioids and other controlled substances over the past decade.

According to the settlement reached last Friday, Walgreens must pay the government a minimum of $300 million, with an additional $50 million owed if the company undergoes any changes in ownership before 2032. The government’s complaint, filed in January in the US District Court for the Northern District of Illinois, alleges that Walgreens knowingly filled illegal prescriptions for controlled substances between August 2012 and March 2023. These prescriptions included excessive opioids and those filled significantly early.

In response to the accusations, Walgreens spokesperson Fraser Engerman stated that the company strongly disagrees with the government’s legal theory and admits no liability. The resolution of the case allows Walgreens to conclude all opioid-related litigations with federal, state, and local governments while focusing on its turnaround strategy.

Amid declining store visits and market share, Walgreens announced the closure of 1,200 stores nationwide in October. Following suit, Rite Aid filed for bankruptcy at the end of 2023 as it faced losses and opioid lawsuit settlements. Additionally, the US Department of Justice filed a similar lawsuit against CVS in December.

The complaint against Walgreens alleges that its pharmacists filled prescriptions despite clear red flags indicating their likely invalidity. The company is also accused of pressuring its pharmacists to fill these prescriptions quickly. The government further alleges that Walgreens’ compliance officials ignored evidence of filling unlawful prescriptions and withheld crucial information on opioid prescribers from its pharmacists.

As part of the settlement, Walgreens has agreed to enhance its compliance with rules around dispensing controlled substances, implement policies requiring pharmacists to verify the validity of prescriptions, and establish a system for blocking prescriptions from illegitimate prescribers. The company has also entered into an agreement with the Drug Enforcement Administration and the US Department of Health and Human Services to establish and maintain a compliance program related to the dispensing of controlled substances.

Overall, the settlement resolves four cases brought by former Walgreens employee whistleblowers. This agreement comes in the wake of CVS and Walgreens agreeing to pay over $10 billion in a multi-state settlement related to lawsuits over the opioid crisis. Over the past eight years, various entities in the pharmaceutical industry have reached settlements totaling more than $50 billion with governments, with the majority of the funds earmarked to combat the opioid crisis.