Pam Bondi sent shockwaves through the pharmaceutical industry on Monday.
She’s going after one of America’s largest pharmacy chains with a vengeance.
And Pam Bondi just dropped a devastating bombshell on Walgreens that will shake Big Pharma to its core.
Walgreens forced to pay up to $350 million for illegal opioid prescriptions
The Justice Department announced a massive settlement with Walgreens over allegations the pharmacy giant illegally filled millions of invalid prescriptions for dangerous opioids and other controlled substances.
Walgreens agreed to pay $300 million to resolve the complaint, with an additional $50 million due if the company is sold or merged before 2032.
Attorney General Pam Bondi didn’t mince words when she announced the 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 Pam Bondi. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”
The government’s complaint alleged that from August 2012 through March 2023, Walgreens knowingly filled millions of unlawful controlled substance prescriptions that showed clear red flags.
These dangerous prescriptions included excessive quantities of opioids, prescriptions filled much earlier than medically necessary, and the especially dangerous drug combination known as a “trinity.”
Walgreens put profits over patients
What makes this revelation particularly disturbing is how Walgreens allegedly forced pharmacists to participate in this dangerous scheme.
According to the Justice Department, Walgreens pressured its pharmacists to fill prescriptions quickly without taking the time needed to confirm each prescription was legitimate.
Even worse, Walgreens compliance officials allegedly ignored substantial evidence that stores were dispensing unlawful prescriptions.
The complaint states that Walgreens intentionally deprived its own pharmacists of crucial information by refusing to share internal data about problematic prescribers and preventing pharmacists from warning each other about suspicious prescribers.
Michael Granston, Deputy Assistant Attorney General of the Justice Department’s Civil Division, explained the gravity of the situation.
“This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs,” Granston stated. “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing or distributing activities.”
Whistleblowers exposed the truth
The civil settlement resolves four cases brought under the qui tam, or whistleblower, provisions of the False Claims Act by former Walgreens employees.
These whistleblowers are set to receive a 17.25% share of the government’s recovery in this matter.
U.S. Attorney Andrew S. Boutros emphasized that the settlement includes monitoring and claims review that will improve Walgreens’ practices immediately.
“Importantly, Walgreens’s agreements with the DEA and HHS-OIG provide swift relief in the form of monitoring and claims review that will improve Walgreens’s practices immediately,” said Boutros. “Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”
New rules for Walgreens
Beyond the massive financial penalty, Walgreens has entered into agreements with the Drug Enforcement Administration (DEA) and Department of Health and Human Services Office of Inspector General (HHS-OIG) to address its future obligations in dispensing controlled substances.
For the next seven years, Walgreens must maintain policies requiring pharmacists to confirm the validity of controlled substance prescriptions before dispensing them.
The pharmacy chain must also provide annual training to pharmacy employees regarding their legal obligations, verify that pharmacy staffing is sufficient to meet these obligations, and maintain a system for blocking prescriptions from those writing illegitimate prescriptions.
DEA Acting Administrator Derek Maltz didn’t hold back in his assessment of Walgreens’ actions.
“Pharmacies have an obligation to ensure that every prescription for highly addictive controlled substances is legitimate and issued responsibly in compliance with the Controlled Substances Act,” said DEA Acting Administrator Derek Maltz. “When one of the nation’s largest pharmacies fails at this obligation, they jeopardize the health and safety of their customers and place the American public in danger. The DEA remains committed to protecting all Americans from unscrupulous practices that prioritize profit over patient safety.”
Walgreens has also entered into a five-year Corporate Integrity Agreement with HHS-OIG, requiring the company to establish and maintain a compliance program with written policies, procedures, training, board oversight, and periodic reporting.
This settlement stands as the largest Controlled Substances Act resolution in the Northern District of Illinois’ history, marking a significant blow against those responsible for fueling America’s devastating opioid crisis.
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