Walgreens will pay Humana $360 million to resolve allegations the pharmacy chain overcharged the health insurer for prescription drugs.
The settlement ends a legal dispute that began when Humana accused Walgreens of inflating pharmacy prices in 2019. The case went before an arbitrator that awarded Humana $642 million in 2021, which Walgreens sued to vacate in the U.S. District Court for the District of Columba last year.
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Humana and Walgreens came to terms on Dec. 29, Walgreens disclosed to the Securities and Exchange Commission on Thursday. At Walgreens' request, the court dismissed the lawsuit Friday. Both companies declined to comment.
Other parties, including some Blue Cross and Blue Shield affiliates, have made similar claims that Walgreens overstated "usual and customary" drug prices, resulting in overpayments. Walgreens denies the accusations.
Walgreens also claimed that the law firm Crowell & Moring, which represented Humana in arbitration, had a conflict of interest because it previously advised Walgreens on related matters.
