In a shocking new lawsuit, Walgreens is accused of fueling the opioid crisis by filling millions of dangerous and excessive prescriptions over the last decade. The U.S. Department of Justice (DOJ) claims the pharmacy giant knowingly dispensed opioids without a legitimate medical purpose, putting millions of pills into circulation.
The complaint, filed in the Northern District of Illinois, paints a damning picture of Walgreens’ practices. It alleges that Walgreens pharmacists filled prescriptions for controlled substances, including opioids, despite clear red flags that they were likely unlawful. This allowed opioids to flood the streets illegally. “These practices allowed millions of opioid pills and other controlled substances to flow illegally out of Walgreens stores,” said Brian M. Boynton, Principal Deputy Assistant Attorney General.
The lawsuit also accuses Walgreens of pressuring pharmacists to ignore potential risks and fill prescriptions without proper verification. The company faces accusations under the federal Controlled Substances Act and the False Claims Act.
Whistleblowers speak out
Four whistleblowers who once worked at Walgreens have stepped forward, revealing the extent of the company’s actions. Their testimony supports the claims that Walgreens enabled the illegal distribution of opioids across the country.
In response to the lawsuit, Walgreens has firmly defended its practices. A company spokesperson said they stand behind their pharmacists, who are dedicated professionals following the law. Walgreens argues that the government is attempting to enforce “arbitrary” rules that don’t exist in any formal law or regulation. “We will not stand by and allow the government to put our pharmacists in a no-win situation,” the statement reads.
The lawsuit comes as Walgreens continues to face financial difficulties, leading to store closures nationwide. The company recently announced the closure of 12 stores in San Francisco, with plans to shutter over 1,200 locations by 2027.
A struggling giant
Walgreens has been struggling to cope with shrinking consumer spending and low drug reimbursement rates. CEO Tim Wentworth acknowledged the company’s difficulties, stating, “Our retail pharmacy business is central to our go-forward business strategy, but regulatory pressures are weighing on us.” Despite efforts to cut costs, the company continues to face financial strain.
To cope, Walgreens is closing underperforming stores, with over a quarter of its 8,600 locations identified as unprofitable. The company aims to minimize customer disruptions by transferring prescriptions to nearby stores and offering employees the chance to relocate.
Store closures and shoplifting woes
The decision to close stores also follows the company’s struggles with shoplifting. Wentworth admitted that measures like locking up merchandise to prevent theft have backfired. Instead of deterring thieves, it has led to a significant drop in sales. “When you lock things up… you don’t sell as many of them,” Wentworth explained, acknowledging a 52% increase in inventory loss due to theft.
Walgreens’ decision to close stores in high-theft areas appears to be part of a strategy to combat the rising tide of theft. But this move has sparked frustration among customers, who are inconvenienced by locked-up necessities like toothpaste, deodorant, and milk.
The Opioid crisis continues to haunt Walgreens
Walgreens has been under scrutiny for its role in the opioid epidemic for years. In 2022, a federal judge ruled that the company could be held responsible for contributing to San Francisco’s opioid crisis. Walgreens was accused of over-dispensing highly addictive drugs without proper oversight.
In a major settlement, Walgreens, CVS, and Walmart agreed to pay $13.8 billion to resolve thousands of opioid-related lawsuits. Walgreens’ share of the settlement is $5.7 billion, spread over 15 years. While the company did not admit to illegal practices, the settlement was seen as a major victory for those seeking justice for opioid-related harm.
Despite the settlement, Walgreens remains firm in its stance, claiming it has “strong legal defenses” and will fight any future lawsuits not covered by the agreement. The company continues to maintain that its pharmacists acted in accordance with the law.
A future in question
Walgreens’ future remains uncertain. While the company battles legal challenges, it also faces mounting financial pressure. With millions of dollars at stake and store closures looming, Walgreens must find a way to regain trust with both customers and regulators. Whether the company can recover from these scandals and turn its business around remains to be seen.
For now, Walgreens faces a difficult road ahead as it defends its actions in court and tries to navigate its financial struggles. The question remains: Can the pharmacy giant overcome its legal and financial hurdles, or will the opioid crisis and other challenges continue to plague its future?
Stay tuned as more developments unfold in this ongoing saga.
