Texas, Walgreens Has Now Agreed to $350M Settlement

In FAFO news, the third largest pharmacy in Texas has gotten what will likely amount to a well-deserved spanking. Walgreens, the pharmacy giant, has agreed to pay up to $350 million in a settlement with the U.S. Department of Justice.

It seems that there is a Walgreen's on every corner in Texas, directly across from a CVS. And while the latest numbers reveal that Express Scripts has the most number of Texas locations with 3,960 locations across 546 cities.

Walgreens Has Now Agreed to $350M Opiod Settlement

CVS Pharmacy, with 773 locations, and Walgreens, with 740 locations are second and third in Texas. These three alone make up nearly 90% of the top 10 pharmacies in Texas.

In January of this year, the U.S. District Court filed a complaint alleging "that Walgreens knowingly filled millions of illegal prescriptions for controlled substances between August 2012 and March 2023. These include prescriptions for excessive opioids and prescriptions filled significantly early." via NPR.

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While Walgreens "disagrees" with this theory it didn't stop them from agreeing to a massive settlement.

"We strongly disagree with the government's legal theory and admit no liability," Walgreens spokesperson Fraser Engerman said in a statement. "This resolution allows us to close all opioid related litigation with federal, state, and local governments and provides us with favorable terms from a cashflow perspective while we focus on our turnaround strategy."

According to the terms of the settlement, Walgreens must pay the government at least $300 million. Additionally, if the company is sold, merged or transferred before 2032 will owe another $50 million.

You can read more on the settlement and how the government alleges Walgreens knowingly contributed to the opioid crises here.