Walgreens to Pay $106.8 Million to Settle False Claims Act Violations for Unfilled Prescriptions

Walgreens agrees to pay $106.8 million to resolve claims of submitting false billings to Medicare and Medicaid for unfilled prescriptions.Photo byStephanie RheeonUnsplash

The Department of Justice (DOJ) announced today that Walgreens Boots Alliance Inc. and Walgreen Co. (collectively, Walgreens) have agreed to pay $106.8 million to resolve allegations of violating the False Claims Act and state laws by billing government healthcare programs for prescriptions that were never dispensed.

The government alleged that, between 2009 and 2020, Walgreens submitted false claims to Medicare, Medicaid, and other federal healthcare programs for prescriptions processed but never picked up by beneficiaries.

“Federal health care programs provide critical services to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton of the DOJ’s Civil Division. “We will hold accountable those who abuse these programs by knowingly billing for goods or services they did not provide.”

The settlement includes $91.9 million for the federal government and $14.9 million for New Mexico, Florida, and Texas under the whistleblower provision of the False Claims Act. This law allows private individuals to file lawsuits on behalf of the government and share in any recovery.

Two whistleblowers, former Walgreens employees Steven Turck and Andrew Bustos, will receive $14.9 million and $1.62 million, respectively, for their roles in exposing the fraudulent claims in Texas and New Mexico.

“This settlement marks another major achievement in our ongoing commitment to combat healthcare fraud,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “It is essential to hold pharmacies accountable when they knowingly fail to comply with national healthcare program requirements.”

As part of the resolution, Walgreens will receive a credit for the $66.3 million it previously refunded pertaining to the settled claims, according to the DOJ.