Walgreens to pay $350 million in major opioid settlement with U.S. government

In a pivotal legal development, Walgreens has agreed to pay up to $350 million to resolve allegations from the U.S. Department of Justice that it illegally filled millions of prescriptions for opioids and other controlled substances over the past decade.

The settlement, finalized last Friday, stems from a federal complaint filed in January 2025 in the U.S. District Court for the Northern District of Illinois. Prosecutors claimed that between August 2012 and March 2023, Walgreens knowingly filled numerous suspicious and excessive prescriptions for controlled substances—including opioids—despite clear red flags. These actions, they allege, contributed to the nation’s opioid epidemic.

Under the agreement, Walgreens will pay the government at least $300 million. An additional $50 million would be owed if the company undergoes a sale, merger, or other ownership transfer before 2032.

A Walgreens spokesperson, Fraser Engerman, stated, “We strongly disagree with the government’s legal theory and admit no liability. This resolution allows us to close all opioid-related litigation with federal, state, and local governments and provides us with favorable terms from a cash flow perspective while we focus on our turnaround strategy.”

The case is part of a broader crackdown on pharmacies accused of fueling the opioid crisis. Prosecutors said Walgreens not only ignored substantial evidence of illegal prescriptions but also pressured pharmacists to process them quickly, withholding critical information about suspect prescribers. Furthermore, the complaint claims that the company billed Medicare and other federal health programs for these prescriptions, thereby violating the False Claims Act.

The U.S. Department of Justice has agreed to dismiss its complaint in light of the settlement.

“This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction,” said Attorney General Pamela Bondi. “Pharmacies have a legal responsibility to dispense controlled substances safely—not simply for profit.”

As part of the agreement, Walgreens will also adopt stricter compliance measures. These include new training requirements for pharmacists, a system to block prescriptions from flagged prescribers, and regular oversight and reporting to the Drug Enforcement Administration and the U.S. Department of Health and Human Services.

The settlement also resolves four whistleblower lawsuits brought by former Walgreens employees. It follows similar actions against major pharmacy chains: CVS reached a multi-billion-dollar opioid settlement in 2022, and Rite Aid filed for bankruptcy in 2023 under the weight of legal and financial troubles related to opioid claims.

Altogether, drugmakers, distributors, and pharmacies have now agreed to over $50 billion in opioid-related settlements in the past eight years, most of which will be directed toward addiction treatment and prevention programs across the country.

This agreement with Walgreens marks a significant step in the federal government’s efforts to hold corporations accountable for their role in one of the most devastating public health crises in recent U.S. history.