San Francisco Frontiers - Walmart Agrees to $50 Million Settlement Over Opioid Prescription Allegations

Walmart has agreed to pay a $50 million settlement to resolve allegations that its pharmacies knowingly filled thousands of illegal prescriptions for opioids and other controlled substances, according to the Department of Justice (DOJ) and Drug Enforcement Administration (DEA).

The government complaint, initially filed at the end of President Donald Trump’s first term and amended during the administration of former President Joe Biden, accused Walmart of violating the Controlled Substances Act. The allegations stated that the company had been filling invalid prescriptions with the knowledge of pharmacists and its corporate compliance team since June 2013.

According to the DOJ, some Walmart pharmacists attempted to report the alleged illegal activity to the company’s internal compliance team. This included the submission of thousands of "refusal-to-fill" forms for suspicious orders. However, the government complaint alleges that the compliance team prioritized commercial goals over legal compliance.

The DOJ cited an email from a director on the compliance team which stated that rather than analyzing refusal-to-fill reports, the team viewed "driving sales and patient awareness" as "a far better use of our Market Directors and Market manager’s time."

Pharmacists also allegedly knowingly filled invalid prescriptions from what the government described as "pill mill" prescribers. These orders often contained red flags, including dangerous combinations of opioids and non-opioid drugs, repeated early fill requests for frequently abused medications, or high dosages of opioids.

Associate Attorney General Stanley Woodward highlighted the settlement in a statement, asserting that the department is committed to holding companies accountable for dispensing controlled substances. "Congress enacted laws to promote responsibility and accountability for companies who dispense controlled substances to protect Americans," Woodward said. "This department will never shy away from vigorously enforcing pharmacies’ obligations to comply with those protections, ensuring that potential profits never justify aiding our nation’s opioid epidemic."

As part of the settlement agreement, Walmart must establish a hotline for employees and patients to report suspected illegal activity. The company is also required to proactively monitor pharmacy dispensing patterns to ensure future compliance.

Walmart did not immediately respond to requests for comment regarding the settlement.

Y.Gomez--SFF