Insurers Challenge Walgreens' Excessive Legal Fees Amid Prescription Drug Reimbursement Battle

Insurers, including Blue Cross and Blue Shield of Minnesota, are urging a U.S. judge to reject what they consider a "grossly inflated" request for legal fees from national retail pharmacy chain Walgreens Boots Alliance Inc WBA in the ongoing legal battle over prescription drug reimbursements. 

According to a Chicago federal court filing, Walgreens' legal team at Ropes & Gray is seeking over $103,000 in fees for the work of 11 lawyers on a single court motion related to the litigation.

The dispute revolves around allegations that Walgreens owes hundreds of millions of dollars to Blue Cross Blue Shield plaintiffs, represented by Crowell & Moring.

The healthcare plans claim that Walgreens sought prescription drug reimbursements at amounts higher than the retailer had charged consumers through a savings program.

A similar case regarding prescription drug reimbursements is underway in a Washington, D.C., federal court, where Walgreens is contesting a $642 million arbitration award won by Humana Inc HUM over similar allegations. Crowell & Moring also represent Humana in this matter.

In the Chicago litigation, Walgreens argued that it should be compensated for compelling the Blue Cross plaintiffs to disclose information about third-party litigation financing, contingency fee arrangements, and joint-defense agreements. 

U.S. Magistrate Judge Sheila Finnegan ruled in favor of Walgreens in May, deeming the request for fees in a case of this magnitude as not "disproportionate."

Walgreens' attorneys defended their $103,000 fee request, claiming it was based on reasonable hourly rates. Ropes & Gray stated that Walgreens was receiving a substantial discount based on an alternative fee arrangement, with the firm filing its rates under seal.

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