Amidst legal turmoil, Walgreens, a retail pharmacy titan, has reached a $360 million settlement with Humana, the healthcare insurer, putting an end to a protracted lawsuit alleging years of overcharging for prescription drug reimbursements. The resolution, disclosed in a court filing, prompted U.S. District Judge Ana Reyes to dismiss the case in the Washington, D.C., federal court.
The lawsuit originated in 2022 when Walgreens sought to overturn a $642 million award granted to Humana in a private arbitration between the two companies. Humana contended that Walgreens had manipulated prescription drug prices, inflating them for over a decade.
While Walgreens confirmed the settlement, the terms remain undisclosed, and the company declined to comment further. The pharmacy giant, based in Deerfield, Illinois, had consistently denied the allegations made by Humana.
Simultaneously, Walgreens aims to resolve a parallel lawsuit in the District of Columbia Superior Court against U.S. law firm Crowell & Moring, representing Humana in the arbitration. The terms of this settlement have not been revealed. Walgreens argued that Crowell had a conflict of interest due to its past representation of Walgreens concerning the drug-price reimbursement matter.
Crowell, denying any wrongdoing, has not provided immediate comments on the resolution. Walgreens, however, still confronts drug-price overcharge claims in various other legal battles.
Recent developments in a Chicago federal court show some Blue Cross Blue Shield plaintiffs withdrawing claims against Walgreens, with the company dropping its own counterclaims. Despite these withdrawals, similar claims from other Blue Cross plaintiffs persist, and Walgreens has declared its intent to vigorously defend itself in those ongoing cases.
As legal complexities unfold, the resolution marks a significant step in Walgreens’ efforts to address the multi-million-dollar dispute with Humana, yet challenges linger on the legal horizon.
