DOJ sues Walgreens for dispensing alleged illegal prescriptions

 DOJ sues Walgreens for dispensing alleged illegal prescriptions


Photo: AntonPetrus/Getty Images

The Department of Justice has filed a lawsuit against Walgreens Boots Alliance and its subsidiaries for allegedly dispensing millions of unlawful prescriptions in violation of the Controlled Substances Act.

According to the lawsuit, Walgreens then sought reimbursement for many of these prescriptions from various federal healthcare programs in violation of the False Claims Act.

Walgreens is one of the country’s largest pharmacy chains, with over 8,000 pharmacies across the United States.

“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,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “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.”

WHAT’S THE IMPACT

The complaint alleges that from about August 2012 through the present, Walgreens knowingly filled millions of prescriptions for controlled substances that lacked a legitimate medical purpose, were not valid, or were not typically used in professional practice.

Among the prescriptions that Walgreens allegedly filled illegally were prescriptions for large quantities of opioids, prescriptions for early opioid refills and scripts for a combination of drugs known as the “trinity,” which is made up of an opioid, a benzodiazepine and a muscle relaxant, and which the DOJ described as “dangerous and abused.”

The lawsuit claims Walgreens pharmacists filled these prescriptions despite clear “red flags” that indicated that the prescriptions were highly likely to be unlawful. Walgreens allegedly ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from its own pharmacists and internal data.

Further, the DOJ alleges that Walgreens that Walgreens systematically pressured its pharmacists to fill prescriptions quickly without taking the time needed to confirm each prescription’s validity. Walgreens also allegedly deprived its pharmacists of crucial information, including by preventing pharmacists from warning one another about certain prescribers.

According to the DOJ, by knowingly filling unlawful prescriptions for controlled substances, Walgreens violated the law and, where Walgreens sought reimbursement from federal healthcare programs, also violated the False Claims Act. Walgreens’ actions, the government said, helped to exacerbate the ongoing opioid crisis in the U.S., and in some cases resulted in death via opioid overdose.

If Walgreens is found liable, it could face civil penalties of up to $80,850 for each unlawful prescription filled in violation of the CSA and treble damages and applicable penalties for each prescription paid by federal programs in violation of the FCA.

The court may also award injunctive relief to prevent Walgreens from committing further CSA violations.

THE LARGER TREND

In September Walgreens agreed to pay $106.8 million to resolve allegations that it billed the government for prescriptions never dispensed.

The DOJ alleged that, between 2009 and 2020, Walgreens submitted false claims for payment to Medicare, Medicaid and other federal healthcare programs for prescriptions that it processed but were never picked up by beneficiaries. As a result, Walgreens received tens of millions of dollars for prescriptions that it never actually provided, the DOJ said.

Earlier this month Walgreens released its financial results from its first quarter, which ended November 30, revealing that it lost $265 million – a sharp decline compared to the $67 million net loss posted in its first quarter a year ago.

Adjusted operating income was also lower this year at $539 million, compared to $687 million a year ago.

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.



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