Walgreens has agreed to pay $106 million to settle lawsuits alleging that the pharmacy chain submitted false payment claims to government health care programs for prescriptions that were never dispensed. The settlement resolves lawsuits filed under the False Claims Act by former employees in New Mexico, Texas, and Florida. These lawsuits accused Walgreens of billing Medicare, Medicaid, and other federal programs for prescriptions processed but not picked up between 2009 and 2020.
The settlement includes an acknowledgment from Walgreens that a software error led to the issue, though the company did not admit legal liability. Walgreens has since improved its electronic management system to prevent such errors in the future and has voluntarily refunded all overpayments. The story has been corrected to clarify that the lawsuits were filed by private parties, not by the U.S. Justice Department.
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