Walgreens has reached a $106 million settlement to resolve allegations of submitting false claims for payments tied to undispensed prescriptions. Announced on Friday, the settlement addresses lawsuits filed in New Mexico, Texas, and Florida by former Walgreens employees, utilizing the whistleblower provisions of the False Claims Act. These provisions allow individuals to file claims on behalf of the federal government and potentially benefit from recovered funds, as confirmed by the U.S. Justice Department.
Allegations and Investigation
The accusations against Walgreens centered around false claims submitted to Medicare, Medicaid, and other federal healthcare programs between 2009 and 2020. The claims allegedly involved prescriptions processed by Walgreens but never collected by patients. Walgreens, according to settlement documents, fully cooperated with the investigation and has since improved its electronic management systems to prevent similar issues.
Walgreens’ Response
In a public statement, Walgreens attributed the problem to a software error that resulted in billing government programs for a limited number of unclaimed prescriptions. The company emphasized that it promptly corrected the issue, informed the government, and refunded all overpayments. Despite agreeing to the settlement, Walgreens did not admit to any legal liability.
