$100M Walgreens Settlement Aims to Resolve Lawsuit Over Allegedly Inflated Generic Drug Prices [UPDATE]

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A $100 million settlement has been reached to resolve a consolidated class action lawsuit that alleged Walgreens failed to consider the prices it charged through its Prescription Savings Club when determining a prescription drug’s usual and customary cost, causing insured customers to overpay for generic prescription medications.

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The proposed lawsuit against Walgreens contended that the pharmacy chain wrongfully overcharged insured customers, health insurers and other third-party payors for prescription drugs while members of the Prescription Savings Club program were allowed to pay less. According to the settlement agreement, the proposed deal with Walgreens aims to resolve these allegations in exchange for monetary relief and the termination of the discount drug program by December 31, 2024.

The official, court-approved website for the Walgreens settlement can be found at SavingsClubSettlement.com.

The plaintiffs, which include three consumers and the benefits providers for several unions, filed an unopposed motion and memo detailing the terms of the deal on November 1, 2024. The parties now await preliminary approval of the settlement terms from United States District Judge Edmond E. Chang.

Related Reading: Union of Operating Engineers Welfare Fund Claims Walgreens Inflated Generic Drug Prices

If preliminarily approved by the court, the Walgreens settlement will cover any individual or entity in the United States and its territories who paid, in whole or in part, for one or more prescription drugs from Walgreens, where prescription insurance benefits were used in filling the order, at any point between January 1, 2007 and the date the settlement receives preliminary approval (or December 31, 2024, whichever comes first).

The proposed class is estimated to include millions of individual consumers and thousands of third-party payors, the plaintiffs’ memo shares.

To be eligible to receive a pro-rated share of the $100,000,000 class action settlement fund, class members must submit a timely, valid claim form, the agreement relays, adding that certain claims may also require supporting documentation.

Related Reading: Walgreens Allegedly Overcharges Third-Party Health Plan Holders

Per the settlement agreement, 20 percent of the fund would be distributed among individual class members on a pro rata basis, while 80 percent would be allocated to entities covered by the deal. Individual payout amounts would depend on how much each class member paid for prescription drugs from Walgreens using insurance benefits since 2007, the document says.

Class members whose claims come to less than $10 would not be issued a payment, the agreement notes.

Notice of the deal with Walgreens will be sent by mail or email to eligible class members within 60 days of the settlement’s preliminary approval. Class members would have 150 days from the approval date to submit a claim form by mail or online through the official settlement website—SavingsClubSettlement.com—once it is launched.

ClassAction.org will update this page if and when the official settlement website is established.

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