In a significant legal development, Walgreens, one of the largest pharmacy chains in the United States, has reached a $100 million settlement in a class action lawsuit. The lawsuit stems from allegations that Walgreens overcharged insurance companies for prescription drugs, resulting in financial harm to consumers and third-party payers alike.
The case focuses on claims that Walgreens inflated its “usual and customary” (U&C) prices for prescription medications. The plaintiffs argue that the pharmacy chain failed to include lower prices offered through its Prescription Savings Club (PSC), which led to higher reimbursements from insurers and third-party payors.
Although Walgreens denies any wrongdoing, the company has agreed to settle to avoid the prolonged costs and risks associated with further litigation. If you are among those affected, now is the time to act, as the deadline to submit claims is fast approaching.
Walgreens Class Action Lawsuit Settlement
The class action lawsuit, titled Russo et al. v. Walgreen Co. (Case No. 1:17-cv-02246), was filed in the U.S. District Court for the Northern District of Illinois. The plaintiffs claim that Walgreens systematically misrepresented its prescription drug pricing, causing excessive payments from both consumers and insurance providers.
At the heart of the case was the alleged failure of Walgreens to include its Prescription Savings Club (PSC) prices when determining its usual and customary prices. These U&C prices are the standard rates that pharmacies report to insurance companies for reimbursement. By not including the lower PSC rates, Walgreens inflated the prices which led to artificially high reimbursements.
The lawsuit also highlighted the financial burden placed on insurance companies, employer health plans, and consumers who were all impacted by these inflated prices. This legal battle ultimately resulted in a $100 million settlement agreement.
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Walgreens’ Response
Though Walgreens has agreed to settle the case, it continues to deny any wrongdoing. The company maintains that its pricing structure is lawful, transparent, and compliant with all regulations governing pharmacy pricing and insurance reimbursements.
Despite this, Walgreens has decided that a settlement is the most practical and efficient resolution to avoid further legal expenses and risks. The settlement offers compensation to those affected, providing relief to consumers and third-party payors who overpaid for prescription drugs from Walgreens between January 1, 2007, and November 18, 2024.
Who Is Eligible for the Settlement?
The settlement applies to both individual consumers and third-party payors who purchased prescription drugs from Walgreens using insurance benefits within the specified timeframe. To qualify for compensation, claimants must meet the following criteria:
Eligibility Criteria:
- Purchased Prescription Drugs: The claimant must have purchased one or more prescription drugs from Walgreens.
- Used Prescription Insurance: The claimant must have used prescription insurance benefits to cover the costs of these purchases.
- Timeframe: Purchases must have occurred between January 1, 2007, and November 18, 2024.
Who Is Not Eligible?
Certain groups of individuals and organizations are excluded from the settlement:
- Consumers who paid entirely out-of-pocket without using insurance.
- Insurance companies or employers who negotiated separate pricing arrangements with Walgreens.
- Walgreens employees, executives, and legal representatives were involved in the case.
Settlement Breakdown
The $100 million settlement fund will be distributed among eligible claimants, but the amount each individual or entity receives will vary depending on their documented expenses related to prescription drugs purchased from Walgreens.
Distribution of Settlement Fund:
| Recipient Category | Share of Net Settlement Fund | Basis of Compensation |
|---|---|---|
| Individual Consumers | 20% | Proportional to the amount they paid out-of-pocket for eligible prescriptions. |
| Third-Party Payors | 80% | Proportional to the amount they reimbursed for eligible prescriptions. |
How to File a Claim
If you believe you are eligible for compensation, you must submit a valid claim form before the deadline. To ensure your claim is processed efficiently, you will need to provide evidence of your prescription drug purchases and associated payments.
Required Documentation:
- Receipts: Proof of prescription drug purchases from Walgreens.
- Bank Statements show payments made to Walgreens for prescriptions.
- Insurance Statements: Indicating reimbursements for prescription drugs.
- Invoices: Pharmacy records verifying prescription drug transactions.
Submission Methods:
- Online Submission: Claims can be submitted via the official settlement website, SavingsClubSettlement.com.
- Mail Submission: Alternatively, claim forms and supporting documents can be mailed to the settlement administrator at the provided address.
Important Deadlines
To ensure that you receive compensation, it is crucial to adhere to the following deadlines:
| Event | Deadline |
|---|---|
| Exclusion & Objection Deadline | March 18, 2025 |
| Claim Submission Deadline | April 17, 2025 |
| Final Approval Hearing | September 10, 2025 |
Settlement Administrator Contact Information
If you have any questions or need assistance with your claim, you can reach out to the settlement administrator:
- Mailing Address:
In re Walgreens Savings Club Litigation Settlement Administrator
c/o A.B. Data Ltd.
P.O. Box 173067
Milwaukee, WI 53217 - Email: info@SavingsClubSettlement.com
- Phone: 877-888-8386
Final Thoughts
The Walgreens Class Action Settlement offers financial compensation to consumers and insurance providers who may have overpaid for prescription drugs due to inflated pricing. While Walgreens denies any wrongdoing, this settlement ensures that affected individuals and entities will receive their fair share of compensation.
If you believe you are eligible, it is crucial to act quickly—ensure your claim is submitted by April 17, 2025, to take advantage of this opportunity. For more information or to file a claim, visit SavingsClubSettlement.com before the deadline.