Justice Department Accuses Walgreens Of Violating Drug Laws In Opioid Epidemic, Ignored Red Flags In Opioid Crisis

Last week, the U.S. Department of Justice filed a civil complaint against Walgreens Boots Alliance Inc WBA and its subsidiaries, alleging widespread violations of the Controlled Substances Act (CSA) and False Claims Act (FCA).

In a statement, Walgreens said, “We are asking the court to clarify the responsibilities of pharmacies and pharmacists and to protect against the government’s attempt to enforce arbitrary “rules” that do not appear in any law or regulation and never went through any official rulemaking process. We will not stand by and allow the government to put our pharmacists in a no-win situation, trying to comply with “rules” that simply do not exist.”

The complaint claims that Walgreens dispensed millions of unlawful prescriptions, including opioids, and sought reimbursements from federal health care programs for prescriptions that were improperly filled.

The allegations span from 2012 to the present, targeting Walgreens’ role in fueling the opioid crisis.

Federal officials contend that Walgreens pharmacists knowingly filled prescriptions with clear signs of being unlawful, such as excessive quantities of opioids, early refills, and dangerous combinations like the “trinity,” consisting of an opioid, benzodiazepine, and muscle relaxant.

According to the lawsuit, Walgreens prioritized speed over accuracy, pressuring pharmacists to fill prescriptions without verifying their legitimacy and preventing them from sharing critical information about prescribers.

The government alleges that Walgreens’ actions contributed to the opioid crisis, including instances where patients overdosed and died shortly after filling prescriptions at Walgreens stores.

If found liable, Walgreens could face civil penalties of up to $80,850 per unlawful prescription, treble damages, and further penalties for reimbursement claims under the FCA.

Principal Deputy Assistant Attorney General Brian M. Boynton stated, “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.” He emphasized that Walgreens systematically ignored red flags and allowed millions of controlled substances to flow unlawfully from its stores.

Four whistleblowers, former Walgreens employees, brought the case under the qui tam provisions of the FCA, enabling the government to intervene.

Price Action: WBA stock is down 13.4% at $10.84 at last check Tuesday.

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