Household name Walgreens Boots Alliance Inc. and Walgreen Co. (together, Walgreens) have agreed to pay $106.8 million to resolve claims that they knowingly violated the False Claims Act.
The claims allege that the supermarket chain failed to dispense medication linked to government health care programs. This has shocked millions of shoppers who view the American institution as a reliable place to pick up pharmacy prescriptions.
“Federal health care programs provide critical health care services to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who abuse these programs by knowingly billing for goods or services they did not provide.”
Walgreens decides to pay to resolve prescription claims
The $106.8 million settlement resolves three ongoing cases for Walgreens in the District of New Mexico, Eastern District of Texas, and Middle District of Florida. All pending cases fall under the qui tam, or whistleblower, provision of the False Claims Act.
It is alleged that Walgreens submitted false Medicare, Medicaid, and other federal healthcare program claims between 2009 and 2020. This resulted in medication that was never picked up and allowed the nationwide brand to pocket tens of millions in unclaimed prescription fees.
Steven Turck, a former Walgreens pharmacy manager, and Andrew Bustos a former Walgreens district pharmacy supervisor, will receive $14,918,675 and $1,620,000 million, respectively, in settlement fees for calling in government watchdogs.
“Millions of Americans rely on the promise of federal healthcare through programs like Medicare and Medicaid,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “Fraudulently billing for prescriptions which are never dispensed endangers the integrity of these critical programs. We are committed to guarding the public’s investment in our health from private corporations.”
Walgreens has received some kindness from the Justice Department and the investigating parties for refunding a portion of the monies it accrued through these claims. $66,314,790 has been paid back by the grocery chain.
Image: Brian Morgan.
