Walgreens Boots Alliance will pay $360 million to health insurance company Humana to settle a lawsuit alleging the retail giant overcharged for prescription drug reimbursements.
Deerfield-based Walgreens disclosed the settlement amount in a Jan. 4 U.S. Securities and Exchange Commission filing.
Dec. 29 was the date Humana and Walgreens reached the settlement agreement and so far, the retailer has paid $150 million, the SEC filing stated. In response, the lawsuit was formally dismissed a day later, according to court records.
This isn’t the first time the companies have crossed paths in the courts. For over a decade, Humana claimed that Walgreens was filing “millions” of falsely-inflated prescription drug prices, according to reporting from Reuters. Walgreens first sued Humana in 2022 to overturn a $642 million award that the insurance company won in private arbitration.
Walgreens asked the federal court to vacate that award but ended up reentering arbitration with Humana, ultimately agreeing to pay $360 million.
The retail pharmacy chain has faced a number of settlements over the past few years, including several multimillion dollar settlements just this past year regarding Walgreens’ role in the opioid epidemic.
The settlements have only added to Walgreens’ worsening financial health, in addition to the pain of a string of c-suite departures this year. Though the retailer’s recent first quarter results did beat analyst expectations.
A Walgreens spokesperson said the company would not comment on the settlement at this time. Previously, the company denied Humana’s allegations.
