The money, plus 4% interest annually, will be paid out over six years under the terms of the agreement. Walgreens will also owe the U.S. an additional $50 million if the company is sold, merged, or transferred prior to fiscal year 2032, the Justice Department said.
The government’s January lawsuit alleged Walgreens ignored “red flags” that prescriptions were illegal and filled them anyway, violating the Controlled Substances Act. The government also alleged it violated the False Claims Act when it then sought reimbursement from federal health care programs, like Medicare, for the prescriptions.