$300M Walgreens Deal Ends DOJ Opioid Prescriptions Probe

Walgreens Boots Alliance has agreed to pay over $300 million to settle claims brought by the U.S. Department of Justice, which alleged the retail pharmacy giant knowingly filled millions of prescriptions for opioids and other controlled substances that were not medically valid. The announcement was disclosed in a U.S. Securities and Exchange Commission (SEC) filing on April 18, 2025.

The government accused Walgreens, including its subsidiaries such as Walgreens Co. and Duane Reade, of disregarding signs that prescriptions were unlawful or lacked a legitimate medical purpose. The pharmacies allegedly ignored red flags such as early refills, excessive quantities, and suspicious combinations of drugs, including opioids, benzodiazepines, and muscle relaxants—referred to by federal authorities as the “trinity,” a cocktail frequently misused for its sedative and euphoric effects.

Federal prosecutors claimed the company pressured pharmacists to prioritize speed over due diligence, creating a culture where verifying prescription legitimacy was discouraged. According to the DOJ’s allegations, the company also failed to block prescriptions from doctors known to issue unlawful scripts and restricted internal pharmacist warnings about such practitioners.

The Charges

The DOJ's complaint, filed after intervening in four whistleblower lawsuits under the False Claims Act, alleged that Walgreens had systematically violated the Controlled Substances Act. The claims include:

• Submitting false claims for federal reimbursement by filling prescriptions that were not medically necessary.
• Ignoring internal and external warnings about rogue prescribers.
• Fostering a corporate environment that punished pharmacists for upholding proper medical standards.

According to the government, the result was thousands of prescriptions filled that Walgreens’ own compliance department had reason to suspect were illegitimate. “Walgreens for years refused to implement a system for blocking Walgreens pharmacies from filling prescriptions written by practitioners that Walgreens knew regularly wrote illegal opioid prescriptions,” the DOJ said in its filing.

The Settlement Terms

The $300 million settlement includes an agreement to pay restitution and resolve claims without any admission of liability or wrongdoing by Walgreens. Of the total, $150 million is earmarked for restitution, and the entire amount will be paid over six years with an annual 4% interest rate backdated to October 2024.

“The company entered into the settlement agreement to resolve the last anticipated major opioid regulatory matter and to avoid the cost and uncertainty of continued litigation,” Walgreens stated in its SEC disclosure.

As part of the settlement, the DOJ and whistleblowers have jointly requested the dismissal of the pending litigation.

The Whistleblowers’ Role

Four former Walgreens employees initiated lawsuits under the False Claims Act, allowing private parties to sue on the government’s behalf. These whistleblower actions—filed in the Northern District of Illinois—were later consolidated by the DOJ after it intervened earlier this year.

The plaintiffs, who worked at different Walgreens locations across the U.S., alleged firsthand knowledge of improper corporate practices related to prescription filling, pharmacist oversight, and internal compliance.

Potential Damages and Legal Implications

In its consolidated case, the government pursued civil penalties, treble damages, and injunctive relief given the widespread nature of the violations, spanning over 8,000 pharmacy locations, the DOJ emphasized the need for corporate accountability in curbing the opioid epidemic.

The case is notable for reinforcing the reach of the False Claims Act into pharmacy operations and could serve as a model for future enforcement actions against retail drug chains.

Law Firms Involved

The federal government was represented by attorneys from several U.S. Attorney’s Offices and the DOJ Civil Division, including:

• Valerie R. Raedy (Northern District of Illinois)
• Nicole Frazer and Joshua R. Barron (DOJ Civil Division)
• Lacy R. Harwell Jr. and Carolyn B. Tapie (Middle District of Florida)
• Thomas F. Corcoran (District of Maryland)
• Elliot M. Schachner (Eastern District of New York)
• John E. Beerbower (Eastern District of Virginia)

Walgreens Boots Alliance is represented by Paul Hastings LLP, with Renato Mariotti serving as counsel.

What’s Next?

The resolution of this matter marks one of the last major federal opioid-related investigations against Walgreens. The company has faced a mounting wave of litigation related to its role in the opioid crisis and has paid out settlements to state and local governments in recent years.

While this settlement concludes federal claims, it does not shield the company from potential state-level actions or private lawsuits stemming from similar allegations. Walgreens is expected to continue defending related matters, but this agreement provides significant financial and strategic breathing room as it pivots toward operational restructuring and investor reassurances.