Walgreens Reaches $2.86M Settlement in Medicaid Lawsuit

Walgreens Medicaid Settlement: Company Pays $2.86 Million

Walgreens Reaches Settlement Over Medicaid Overbilling

Walgreens has agreed to a Medicaid Settlement of $2.86 million over claims it overbilled Medicaid for generic drugs.

Breakdown of the Settlement

The settlement includes $1.4 million to the U.S. government, plus interest, and $352,134 to Georgia and $1.1 million to Massachusetts.
The allegations stem from Walgreens submitting inflated prices for certain drugs to Medicaid programs, resulting in higher reimbursements.

Whistleblower Claims Drive the Settlement

The lawsuit, filed by the U.S. in 2019, followed whistleblower claims under the False Claims Act.
These provisions allowed a whistleblower to sue on behalf of the government and receive a portion of the award.

Further Legal Troubles for Walgreens

This settlement comes after Walgreens’ $595 million agreement with Everly Health Solutions over COVID testing services.
Additionally, Walgreens faces a lawsuit from the U.S. Department of Justice for allegedly dispensing opioids illegally.

Continuing Legal and Business Challenges

Walgreens continues to face significant legal hurdles while undergoing a large-scale business overhaul.
Recently, the company agreed to be acquired by Sycamore Partners for approximately $10 billion.

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