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Walgreens settles two lawsuits

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WASHINGTON — Walgreens Boots Alliance has agreed to pay more than $269 million to settle federal and state lawsuits that accused the retailer of overbilling federal health-care programs.

WBA logoThe pharmacy chain will pay $209.2 million to resolve claims it improperly billed Medicare, Medicaid and other federal programs from 2006 to 2017 for hundreds of thousands of insulin pens it dispensed to patients it knew did not need them.

Walgreens will also pay $60 million to resolve claims it overcharged Medicaid from 2008 to 2017 by failing to disclose and charge the discount drug prices it offered the public through its Prescription Savings Club program.

The company said it “admits, acknowledges, and accepts responsibility” for conduct alleged by the federal government, according to the settlement agreements.

In a separate statement, Walgreens said it “has admitted no wrongdoing,” and that the settlements were in the best interests of customers, patients and other stakeholders.

It also said it set aside enough money for both settlements as of Nov. 30, 2018.

Walgreens’ settlements resolve claims under the federal False Claims Act, which lets private whistleblowers sue on the federal government’s behalf and share in recoveries.

The accords were respectively approved last week by U.S. District Judges Paul Crotty and Paul Oetken, who both are in Manhattan.

About $200 million of the payout will go to the federal government, and the rest to state governments.

Walgreens also entered a corporate integrity agreement with the Office of the Inspector General of the U.S. Department of Health and Human Services to ensure future compliance with federal healthcare programs.


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