Walgreens Legal Battles: Class Action Lawsuits Over Drug Pricing, Prescription Safety, and Product Controversies
Walgreens, one of the largest pharmacy chains in the United States, has been embroiled in several class action lawsuits addressing issues ranging from prescription drug pricing to product safety concerns. These legal challenges not only impact the company’s financial standing but also influence its reputation and operational practices. This article delves into the recent developments in these lawsuits, providing a comprehensive overview of the allegations, settlements, and ongoing litigations.
$100 Million Settlement Over Prescription Drug Pricing
In November 2024, Walgreens agreed to a $100 million settlement to resolve allegations that it overcharged insured customers for generic prescription medications. The class action lawsuit claimed that Walgreens failed to consider the prices offered through its Prescription Savings Club (PSC) when determining the “usual and customary” prices reported to insurers. As a result, insured customers allegedly paid higher out-of-pocket costs compared to PSC members who paid lower prices without using insurance.
The settlement received preliminary approval on November 18, 2024, and covers individuals and entities who paid for prescription drugs at Walgreens using insurance benefits between January 1, 2007, and November 18, 2024. Eligible class members must submit claim forms by April 17, 2025, to receive compensation. A final approval hearing is scheduled for September 10, 2025.
Allegations of Dispensing Unlawful Prescriptions
On January 17, 2025, the U.S. Department of Justice filed a civil complaint against Walgreens, alleging that the company dispensed millions of prescriptions for controlled substances that lacked a legitimate medical purpose. The lawsuit asserts that, from approximately August 2012 through the present, Walgreens pharmacists filled prescriptions despite clear “red flags” indicating potential illegitimacy. These prescriptions included dangerous and excessive quantities of opioids and combinations known as the “trinity,” comprising an opioid, a benzodiazepine, and a muscle relaxant.
The complaint further alleges that Walgreens systematically pressured its pharmacists to fill prescriptions quickly without adequate verification, contributing to the unlawful distribution of controlled substances. This case underscores the ongoing scrutiny of pharmacy practices amid the national opioid crisis.
Product Safety Concerns: Benzene in Cold Medication
In September 2024, Walgreens faced a proposed class action lawsuit alleging that its generic version of the cold medicine Mucinex contains benzene, a known carcinogen. The lawsuit, filed in federal court in Chicago, claims that Walgreens failed to label the products or warn customers about the presence of benzene. This legal action follows reports suggesting that generic Mucinex products sold at various retailers, including Walgreens, contain benzene.
The plaintiffs seek damages and restitution, proposing the formation of nationwide and state-specific customer classes. Walgreens has not publicly commented on the lawsuit but previously stated compliance with FDA regulations. The FDA advises against the use of benzene in drug manufacturing due to its carcinogenic properties.
Tragic Consequences of Medication Cost Increases
In early 2025, Walgreens was named in a lawsuit following the death of 22-year-old Cole Schmidtknecht from Wisconsin. Schmidtknecht, who had chronic asthma, reportedly died after being unable to afford his maintenance inhaler due to a sudden price increase from approximately $66 to over $500. The lawsuit, filed by his parents, targets Walgreens and United Health Group’s OptumRx, alleging that the abrupt cost hike led to Schmidtknecht’s inability to obtain necessary medication, ultimately resulting in his fatal asthma attack.
The family seeks damages for his death, citing loss of future earnings, physical and mental suffering, and emotional trauma. This case highlights the critical issue of medication affordability and its life-threatening implications.
Conclusion
Walgreens’ involvement in multiple class action lawsuits reflects the complex challenges faced by large pharmacy chains in balancing business practices with consumer protection and regulatory compliance. The outcomes of these legal proceedings will likely have significant implications for the company’s operations, financial health, and reputation. Moreover, these cases underscore the broader issues within the pharmaceutical industry, including drug pricing transparency, prescription safety protocols, and the ethical responsibilities of healthcare providers.
As these lawsuits progress, they may serve as catalysts for policy reforms and industry-wide changes aimed at safeguarding consumer interests and ensuring equitable access to essential medications. Stakeholders, including regulatory bodies, healthcare providers, and consumers, will be closely monitoring these developments to advocate for a more accountable and transparent pharmaceutical landscape.
