Walgreens Boots Alliance, Inc. (WBA, Financial) has announced a settlement agreement with the U.S. Department of Justice (DOJ) to resolve ongoing legal disputes concerning the enforcement of opioid dispensing rules. The settlement, which was finalized on April 18, 2025, addresses claims related to the DOJ and U.S. Drug Enforcement Administration (DEA) actions against the company.
Under the terms of the agreement, Walgreens Boots Alliance will pay $300 million plus interest, accruing at an annual rate of 4.0%, over a six-year period. An initial payment of $20 million plus interest is due within 21 days of the settlement's execution. Additionally, the company may be required to pay up to an extra $50 million if certain future free cash flow targets are met during the settlement term. This contingency payment will also be triggered by any sale, merger, or transfer of a significant portion of the company's assets during the settlement period, including the previously announced transaction with affiliates of Sycamore Partners, L.P.
The settlement agreement stipulates that both parties will file dismissals with the courts, effectively resolving all claims against Walgreens Boots Alliance and the DEA. Importantly, the agreement includes no admission of wrongdoing or liability by the company. This resolution marks the conclusion of the last anticipated major opioid regulatory matter for Walgreens Boots Alliance, allowing the company to avoid the costs and uncertainties associated with continued litigation.
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