National pharmacy chain Walgreens has agreed to pay up to $350 million as part of a major settlement with the U.S. Department of Justice (DOJ) following allegations that it illegally filled millions of opioid prescriptions over more than a decade. The settlement, announced Monday, resolves a federal lawsuit accusing Walgreens of violating the Controlled Substances Act and False Claims Act by dispensing controlled substances without proper oversight and seeking reimbursement through federal healthcare programs for those prescriptions.

According to the DOJ, the illegal dispensing activity occurred between 2012 and 2023 and involved millions of prescriptions filled without adequate verification or concern for potential abuse and diversion—key contributors to the country’s devastating opioid epidemic. Federal prosecutors said Walgreens failed to uphold its legal responsibility to dispense controlled substances in a safe and compliant manner. Instead, the company prioritized profit, filling questionable prescriptions and then attempting to recoup the costs from federal programs such as Medicare and Medicaid.

“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” said Attorney General Pamela Bondi. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.” The DOJ also emphasized that the settlement is not just a financial penalty but part of a larger effort to ensure accountability across the pharmaceutical supply chain. Deputy Assistant Attorney General Michael Granston of the DOJ’s Civil Division added, “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing, or distributing activities.”

• $50 million of the total payout is conditional, based on whether Walgreens undergoes a sale, merger, or transfer of ownership before 2032.

• The amount also reflects an assessment of Walgreens’ ability to pay, suggesting that the DOJ took into account the company’s financial standing and future business outlook.

The lawsuit, originally filed in the U.S. District Court for the Northern District of Illinois, detailed how Walgreens allegedly bypassed red flags in prescription patterns and failed to report suspicious activity, directly contributing to the opioid overdose crisis that has claimed hundreds of thousands of lives across the United States. Walgreens, which was founded in Chicago and is currently headquartered in suburban Deerfield, Illinois, is just one of several pharmacy giants that have faced scrutiny and legal action over their role in the opioid epidemic. Previous settlements have involved companies such as CVS, Rite Aid, and Walmart.

The federal government has made cracking down on opioid distribution abuses a national priority, and this settlement is among the largest involving a pharmacy chain. DOJ officials say it sends a strong message to all healthcare providers and retailers that compliance with federal drug laws is non-negotiable. With this resolution, Walgreens avoids a prolonged trial but remains under the spotlight as the public and government continue to demand systemic reform and oversight in the pharmaceutical industry.