in Newswire Published on October 20, 2017

Union of Operating Engineers Welfare Fund Claims Walgreens Inflated Generic Drug Prices [UPDATE]

Last Updated on November 8, 2024

International Union of Operating Engineers Local 295-295C Welfare Fund v. Walgreen Co.

Filed: October 17, 2017 ◆§ 1:17-cv-07515

Walgreens faces another case claiming it artificially spiked generic drug prices for insured customers through its 'Prescription Savings Club.'

Defendant(s)

Walgreen Co.

Law(s)

State(s)

Illinois

November 8, 2024 – Walgreens Lawsuit Over Generic Drug Pricing Settled for $100M

A $100 million settlement has been reached to resolve the proposed class action lawsuit detailed on this page.

Learn more about the Walgreens class action settlement.

Are you owed unclaimed settlement money? Check out our class action rebates page full of open class action settlements.

The International Union of Operating Engineers Local 295-295C Welfare Fund has filed a proposed class action that alleges Walgreens is behind a “scheme” through which it artificially inflates the costs of generic drugs beyond their “usual and customary” prices. The lawsuit, filed in United States District Court in Illinois, claims Walgreens, primarily through its “Prescription Savings Club” program, charges individuals with third-party health insurance higher prices for generic drugs than those generally defined within the pharmaceutical industry as the cash price offered to the general public (called “usual and customary prices”). Walgreens, the lawsuit claims, has intentionally charged prices for generic drugs that, because of how much higher they are than what’s customary, have resulted in falsely inflated payments made to third-party payors, i.e. customers’ health insurance plans, and falsely inflated customer copayments.

Customers enrolled in Walgreens’ Prescription Savings Club (PSC) are prohibited from using insurance when purchasing prescription drugs, the lawsuit says, which is important to note given the following allegation in the complaint (emphasis ours):

“Accordingly, Walgreens was required to report to third-party payors the PSC Prices as Walgreens’ ‘usual and customary’ prices for the prescription generic drugs. However, since the PSC was created in 2007, Walgreens has purposefully disregarded the PSG Prices in setting its ‘usual and customary’ prices, and thereby falsely inflated the ‘usual and customary’ prices reported to third-party payors for these drugs.

Walgreens has effectively created a discriminatory pricing scheme, whereby customers enrolled in the PSC who are not using insurance when purchasing a prescription generic drug are able to pay the lower PSC Price, while third-party payors and their beneficiaries must pay the higher and artificially inflated ‘usual and customary’ prices when the beneficiaries use insurance.”

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