Walgreens settles opioid lawsuit for $300 million

In the United States, Walgreens has reached a significant legal settlement concerning its role in the ongoing opioid crisis. On Monday, April 21, 2025, the U.S. Department of Justice announced that Walgreens would pay $300 million to resolve allegations that the pharmacy chain unlawfully filled a vast number of prescriptions for controlled substances, notably opioids, over the past decade. This settlement specifically addresses concerns raised in a lawsuit filed in January 2025, which claimed that Walgreens had knowingly filled prescriptions despite clear indications that they were likely invalid. The federal government accused Walgreens of violating both the Controlled Substances Act and the False Claims Act, utilizing federal health programs to seek reimbursement for these illegitimate prescriptions. Alongside this monetary settlement, Walgreens is expected to implement stricter compliance measures to prevent future violations regarding the dispensing of controlled substances. The settlement will accrue 4% interest annually over six years and entails an additional $50 million payment should the company undergo any significant restructuring before 2032. Walgreens denied any wrongdoing, asserting that they strongly disagreed with the legal arguments presented by the government. Nonetheless, the settlement represents an effort to conclude all opioid-related litigation against the company at various governmental levels, allowing Walgreens to redirect its focus towards improving its business performance amidst declining market presence and store closures. The opioid crisis continues to heighten scrutiny over pharmacies, driving government agencies to enforce stricter regulations to ensure responsible dispensing practices. In unrelated news, Walgreens has already announced closures of 1,200 stores due to financial struggles, while competitors like Rite Aid have faced bankruptcy amidst similar settlements.