By Emon Reiser

Walgreens Boots Alliance will pay more than $300 million as part of an agreement with the Justice Department to settle charges the pharmacy chain helped fuel the opioid crisis by knowingly filling millions of prescriptions that lacked a legitimate medical purpose.

The company will pay 4% in annual interest on the settlement amount over a six year period, according to a filing with the Securities and Exchange Commission on Friday. It will also pay $20 million plus interest within 21 days of the agreement being executed.

Walgreens said it may be required to pay an additional amount of up to $50 million if it meets certain free cash flow targets during the term of the settlement.

The agreement includes no admission of wrongdoing or liability by Walgreens.

"The company entered into the settlement agreement to resolve the last anticipated major opioid regulatory matter and to avoid the cost and uncertainty of continued litigation," Walgreens said.

The DOJ filed suit against Walgreens on Jan. 16, accusing the company of filling prescriptions that were invalid, weren't issued in a professional practice, or lacked a legitimate purpose since August 2012. The prescriptions included what the DOJ said were excessive quantities and early refills of opioids, a muscle relaxant at the center of a widespread drug death and abuse crisis.

Walgreens on that same day filed suit against both the DOJ and the Drug Enforcement Administration seeking declaratory judgement and other relief in connection with the DEA enforcement actions.

As part of the settlement both sides will dismiss all claims involved in the case.

Write to Emon Reiser at emon.reiser@wsj.com

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Emon Reiser

 
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