Walgreens has agreed to a $106 million settlement to resolve allegations that it submitted false payment claims for prescriptions that were never dispensed. The settlement, announced on Friday, addresses lawsuits filed in New Mexico, Texas, and Florida, involving whistleblowers who worked in Walgreens’ pharmacy operations.
The lawsuits were filed under the False Claims Act, which allows private parties to bring cases on behalf of the U.S. government and share in the recovery. The claims accused Walgreens of billing Medicare, Medicaid, and other federal health programs from 2009 to 2020 for prescriptions that were processed but not picked up by patients.
According to settlement documents, Walgreens cooperated with the investigation and has since enhanced its electronic management systems to prevent future issues. The company acknowledged that a software error led to the inadvertent billing for some prescriptions, but it has since corrected the error and refunded all overpayments.
While Walgreens has settled the cases, it did not admit to legal liability. The settlement aims to resolve the claims without further litigation.
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