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Tag: Walgreens
US Court Files Civil Complaint Alleging Walgreens Dispensed Millions of Unlawful Prescriptions
The US District Court for the Northern District of Illinois filed a civil complaint on January 16, 2025, leading to the Justice Department alleging that Walgreens Boots Alliance, Walgreen Co, and various subsidiaries dispensed millions of unlawful prescriptions in violation of the Controlled Substances Act. Walgreens then allegedly sought reimbursement for many of the prescriptions, in violation of the False Claims Act, according to a news release from the US Department of Justice.
Walgreens, Opioids, Controlled Substance Act, False Claims Act | Image Credit: Timon | stock.adobe.com
“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,” Brian M. Boynton, JD, principal deputy assistant attorney general and head of the Justice Department’s Civil Division, said in the news release. “Our complaint alleges that Walgreens pharmacists filled millions of controlled substance prescriptions with clear red flags that indicated the prescriptions were highly likely to be unlawful, and that Walgreens systematically pressured its pharmacists to fill prescriptions, including controlled substance prescriptions, without taking the time needed to confirm their validity. These practices allowed millions of opioid pills and other controlled substances to flow illegally out of Walgreens stores.”
The department alleges that from approximately August 2012 through the present, “Walgreens knowingly filled millions of prescriptions for controlled substances that lacked a legitimate medical purpose, were not valid, and/or were not issued in the usual course of professional practice.” This included allegedly filling prescriptions for dangerous and excessive quantities, early refills, and a dangerous and abused combination of medications known as the “trinity”—an opioid, a benzodiazepine, and a muscle relaxant. The complaint alleges that Walgreens pharmacists filled the prescriptions despite clear “red flags” indicating that filling the prescription would be highly likely to be unlawful and that Walgreens allegedly pressured its pharmacists to fill prescriptions quickly without taking time to confirm the validity. The department also alleges that Walgreens deprived pharmacists of crucial information, according to the news release.
“As alleged in the complaint, Walgreens continually disregarded its obligations under the Controlled Substances Act and False Claims Act by illegally dispensing powerful controlled substances and unlawfully seeking reimbursement from federal health care programs,” Morris Pasqual, JD, acting US attorney for the Northern District of Illinois, said in the news release. “These laws are critically important in protecting our communities from the dangers of the opioid epidemic. 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.”
Furthermore, the department alleges that Walgreen’s actions fueled the opioid crisis and, in some instances, lead to patient deaths due to overdosing on opioids shortly after the alleged filling of unlawful prescriptions. If found liable, Walgreens could face civil penalties of up to $80,850 for each prescription filled in violation as well as treble damages and penalties for each prescription paid by the federal programs. Additionally, the court could award injunctive relief to prevent Walgreens from committing any other violations to the 2 acts.
“Pharmacies play a critical role in ensuring that only lawful controlled substance prescriptions are dispensed—Walgreens failed to do just that,” Erek Barron, JD, US Attorney for the District of Maryland, said in the news release. “We are committed to holding Walgreens accountable for its role in the opioid epidemic that has devastated communities across the country, including in Maryland.”
REFERENCE
Justice Department files nationwide lawsuit alleging Walgreens knowingly filled millions of prescriptions that lacked a legitimate medical purpose. News release. US Department of Justice. January 17, 2025. Accessed January 20, 2025. https://www.justice.gov/opa/pr/justice-department-files-nationwide-lawsuit-alleging-walgreens-knowingly-filled-millions
In a recent development, the US Court has filed a civil complaint against Walgreens, alleging that the pharmacy chain dispensed millions of unlawful prescriptions. The complaint accuses Walgreens of failing to properly monitor and report suspicious orders of prescription drugs, contributing to the opioid crisis in the country.The complaint alleges that Walgreens dispensed more than 30 million doses of oxycodone and hydrocodone to its Florida stores between 2006 and 2014, despite numerous red flags indicating potential diversion of these drugs for illicit purposes. The pharmacy chain is also accused of failing to report suspicious orders to the Drug Enforcement Administration, as required by law.
This legal action highlights the role that pharmacies play in the opioid epidemic and the importance of strict oversight and compliance with regulations. It serves as a stark reminder of the devastating impact that the improper dispensing of prescription drugs can have on individuals and communities.
As the case unfolds, it will be important to monitor the outcome and the potential implications for Walgreens and other pharmacy chains. Stay tuned for updates on this developing story.
Tags:
- US Court
- Civil Complaint
- Allegations
- Walgreens
- Dispensed
- Unlawful Prescriptions
- Lawsuit
- Pharmaceutical
- Legal proceedings
- Healthcare industry.
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Walgreens Stock Plummets as DOJ Files Lawsuit
Key Takeaways
- The S&P 500 added 0.9% on Tuesday, Jan. 21, the first day of trading following President Donald Trump’s return to the White House.
- Oracle stock surged following reports that the software giant would participate in a massive joint venture to build out AI infrastructure in the U.S.
- Walgreens shares plunged as the Justice Department filed a lawsuit claiming the pharmacy chain had dispensed prescriptions with no legitimate medical basis.
Major U.S. equities indexes advanced as the markets kicked off a shortened trading week following the Martin Luther King Jr. holiday and President Donald Trump’s inauguration.
Despite an array of executive orders signed in the opening moments of his new presidency, Trump notably did not enact tariffs he previously indicated he would impose on day one, suggesting the possibility of a less aggressive stance on trade than expected.
The S&P 500 added 0.9% on Tuesday. The Nasdaq climbed 0.6%, while outperformance in the industrials sector helped lift the Dow 1.2%.
Shares of nuclear power generators moved higher on the first day of trading in the second Trump administration. Chris Wright, selected by Trump to head the Department of Energy, has stressed that the U.S. will prioritize nuclear power production as it aims to increase energy output. Vistra (VST) shares surged 8.5% Tuesday, posting the S&P 500’s top performance, after authorities lifted evacuation orders related to a fire at a company plant in Monterey County, California. NRG Energy (NRG) shares were up 6.7%.
Shares of Oracle (ORCL) popped 7.2% higher following reports that the software giant would participate in a $500 billion program aimed at enhancing artificial intelligence (AI) infrastructure in the U.S. According to CBS News, Trump is set to announce a massive private-sector investment—a joint venture known as Stargate that will also include Japanese holding company SoftBank (SFTBY) and research organization OpenAI.
Prologis (PLD), a real estate investment trust (REIT) focused on logistics facilities, reported better-than-expected core funds from operations (FFO) for the fourth quarter, and its shares jumped 7.1%. An increase in demand for warehouse space—boosted by importers stocking up on goods in anticipation of potential tariffs under the new presidential administration—helped drive the strong performance. Prologis also sold a Chicago-area data center facility during the quarter but did not disclose the financial details of the transaction.
Walgreens Boots Alliance (WBA) shares plunged 9.2%, losing the most of any S&P 500 stock. The U.S. Department of Justice filed a lawsuit claiming the pharmacy giant unlawfully dispensed millions of prescriptions with no legitimate medical basis. According to the suit, the company pressed its pharmacists to fill prescriptions quickly, resulting in the improper dispensation of opioids and other medications. The pharmacy chain said the lawsuit amounted to an “attempt to enforce arbitrary ‘rules’ that do not appear in any law or regulation.”
Shares of online travel platform operator Booking Holdings (BKNG) sank 4.9%. Tuesday’s downturn reversed gains posted by the stock last week after analysts at Morgan Stanley lifted their price target on Booking stock, citing the potential for the company’s generative AI tool to drive outperformance. However, competition is intense in the travel booking industry, and the company’s dependence on lead generation for bookings remains a concern.
First Solar (FSLR) shares slipped 4.9%. Although BMO Capital Markets reiterated its “outperform” rating on First Solar stock, analysts pointed to numerous challenges, including issues related to the solar equipment market in India that could also weigh on the company’s sales in Malaysia and Vietnam. Beyond the international concerns, the outlook for renewable energy in the U.S. under the new presidential administration adds a layer of uncertainty.
Walgreens shareholders were left reeling today as the stock plummeted following news that the Department of Justice (DOJ) has filed a lawsuit against the company. The lawsuit alleges that Walgreens engaged in fraudulent billing practices and overcharged Medicare and Medicaid for prescription drugs.The stock dropped by over 10% in early trading, wiping out billions of dollars in market value. Investors are concerned about the potential financial impact of the lawsuit on the company’s bottom line, as well as the potential damage to its reputation.
The DOJ’s lawsuit is just the latest in a series of legal challenges facing Walgreens, which has been grappling with increased competition and regulatory scrutiny in recent years. The company has vowed to fight the charges and maintain its commitment to providing affordable and accessible healthcare to all customers.
Analysts are closely monitoring the situation and advising investors to proceed with caution until more information is available. Stay tuned for further updates on this developing story.
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- Walgreens DOJ lawsuit
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Walgreens Response to Department of Justice Opioid Lawsuit
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.
Walgreens stands behind our pharmacists, dedicated healthcare professionals who live in the communities they serve, filling legitimate prescriptions for FDA-approved medications written by DEA-licensed prescribers in accordance with all applicable laws and regulations. Walgreens has long been a leader in providing education and resources, as well as implementing best-in-class policies and procedures, to help combat opioid misuse and abuse.
We look forward to the opportunity to defend the professionalism and integrity of our pharmacists.
In response to the Department of Justice’s lawsuit against Walgreens for its role in the opioid crisis, the company has released a statement outlining its commitment to addressing the issue and working towards solutions.Walgreens acknowledges the seriousness of the opioid epidemic and the devastating impact it has had on communities across the country. The company states that it is dedicated to being part of the solution and has taken numerous steps to combat opioid abuse.
These measures include implementing programs to educate patients and healthcare providers about the risks of opioids, enhancing monitoring and reporting of suspicious prescriptions, and providing naloxone, a medication that can reverse opioid overdoses, in all of its pharmacies.
Walgreens also emphasizes its cooperation with law enforcement and regulatory agencies to prevent diversion and misuse of opioids. The company states that it is committed to working with all stakeholders to find ways to address the opioid crisis and ensure the safe and responsible use of these medications.
While the lawsuit filed by the Department of Justice is a serious matter, Walgreens remains steadfast in its commitment to addressing the opioid crisis and will continue to take proactive steps to combat this public health issue.
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Walgreens, Department of Justice, Opioid Lawsuit, legal action, drugstore, pharmaceuticals, opioid crisis, healthcare industry, corporate responsibility, legal implications, federal lawsuit, prescription drugs, pharmacy chain
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