However, plaintiffs alleged the prices Walgreens charged to club members were “usual and customary” prices and that prices paid by insurers were higher, resulting in higher copays and deductibles for insured patients.
The settlement, disclosed Nov. 1, puts an end to “seven years of highly contested litigation,” according to a filing in U.S. District Court for the Northern District of Illinois. Plaintiffs’ lawyers described the settlement as an “excellent result” in the filing. The lawsuit was seeking damages for insured customers nationwide dating back to 2007.
Meanwhile, Walgreens admits no liability over plaintiffs’ accusations and believes the claims never had any merit, Walgreens spokesman Fraser Engerman said in a statement to Crain’s.
He added that the Prescription Savings Club was launched more than 15 years ago to provide equitable access to lower-cost medications for the uninsured and underinsured. The program shut down in August, according to Walgreens' website.
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“This resolution allows us to focus on our turnaround strategy that will benefit our patients, customers, team members and shareholders,” Engerman said.
The settlement follows a recent $106.8 million fine Walgreens agreed to pay to the U.S. Department of Justice to settle allegations that it billed government healthcare programs for prescriptions never dispensed.
Walgreens stock is up 1% over the last five days, trading at about $9.43.
This story first appeared in Crain's Chicago Business.
