Walgreens Settles $106.8M Lawsuit Over Unclaimed Prescriptions

Case Overview: Walgreens has agreed to pay $106.8 million to settle a lawsuit alleging that the company fraudulently billed government healthcare programs for prescriptions that were never dispensed.

Consumers Affected: Individuals who had prescriptions processed at Walgreens but never picked them up.

Walgreens has agreed to pay $106.8 million to end claims that it fraudulently billed U.S. government health programs for prescriptions that were never dispensed, according to a Sept. 13 announcement from the Department of Justice (DOJ). 

The DOJ claims that between 2009 and 2020, Walgreens submitted payment requests to Medicare, Medicaid, and other healthcare programs for prescriptions processed but never collected by patients.

These actions, according to the DOJ, resulted in Walgreens receiving millions of dollars in payments for prescriptions that were never provided. 

The DOJ claimed Walgreens committed violations under the federal False Claims Act, a law that penalizes individuals or companies that defraud governmental programs.

Walgreens Blames Software Error For Overbilling, Agrees to $106.8 Million Settlement

In its settlement, Walgreens did not admit to any wrongdoing. 

Instead, the company attributed the issue to a software error, which they claim led to accidental overbilling for prescriptions that patients ordered but never picked up. 

"We identified and corrected the error, reported it to the government, and voluntarily refunded the overpayments," the pharmacy chain reportedly said in a statement.

Walgreens has already refunded $66.3 million related to these claims, which was factored into the total settlement, it said. The company also noted it has since taken "significant steps" to upgrade its internal pharmacy management system to prevent similar issues from occurring in the future.

Whistleblowers Awarded Millions In False Claims Act Settlement

The settlement resolves three whistleblower lawsuits filed under the False Claims Act in Florida, New Mexico, and Texas, the DOJ said.

Whistleblowers in these cases are set to receive a share of the payout for their role in uncovering the fraudulent billing. 

Steven Turck, a former Walgreens pharmacy manager from Texas, will receive nearly $15 million, while Andrew Bustos, a former district pharmacy supervisor from New Mexico, is set to receive $1.62 million.

The DOJ highlighted Walgreens' cooperation in resolving the matter. Brian Boynton, head of the DOJ's civil division, said in a statement: "We will hold accountable those who abuse these programs by knowingly billing for goods or services they did not provide."

In March, four proposed class action lawsuits were filed by consumers in California and Hawaii courts, alleging that various benzoyl peroxide acne treatments sold by L’Oréal, Walgreens, Walmart and Genomma Lab contain the chemical benzene.

Have you experienced issues with unclaimed prescriptions at Walgreens or other pharmacies? Share your thoughts and experiences in the comments below.