Walgreens has agreed to a significant $100 million class action settlement in response to allegations that it overcharged insurance companies for prescription drugs. The settlement resolves claims that the pharmacy chain inflated the “usual and customary” prices for prescription medications by failing to factor in its Prescription Savings Club program prices. As a result, insurers were allegedly reimbursed more than necessary, leading to inflated costs for consumers and third-party payors.
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Who is Eligible for Compensation?
Consumers and entities who used prescription insurance benefits to purchase medications from Walgreens between January 1, 2007, and November 18, 2024, may be eligible for a share of the settlement. This includes individuals and organizations that paid for one or more prescriptions during this period.
The Allegations and Settlement Terms
The class action lawsuit claimed that Walgreens manipulated its pricing system by inflating the “usual and customary” prices of prescription drugs, ignoring the lower rates offered through its Prescription Savings Club. As a result, insurers and third-party payors reimbursed Walgreens at higher rates than they should have, impacting both consumers and the insurance industry.
While Walgreens has not admitted any wrongdoing, they have agreed to settle the case to avoid prolonged litigation. As part of the settlement, Walgreens will distribute a total of $100 million to eligible claimants.
How Much Could You Receive?
Compensation from the settlement will be distributed as follows:
- Consumers: Those who paid for prescription medications during the class period will receive a proportional share of 20% of the net settlement fund.
- Third-Party Payors: Entities such as insurance companies that reimbursed Walgreens for prescription drugs will receive a proportional share of the remaining 80% of the net settlement fund.
The exact amount each claimant will receive depends on the total number of valid claims and the amount paid for eligible prescriptions.
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Important Deadlines
- Claim Form Submission Deadline: April 17, 2025.
- Exclusion and Objection Deadline: March 18, 2025.
- Final Approval Hearing: September 10, 2025.
Proof of Purchase Requirements
To receive a payout from the settlement, class members must provide proof of purchase, such as receipts, invoices, cancelled checks, or other transaction records from Walgreens.
How to File a Claim
Eligible individuals and entities must submit a claim form to receive compensation. The claim form can be accessed via the official settlement website: SavingsClubSettlement.com.
Legal Background
The case, titled Russo, et al. v. Walgreen Co., was filed in the U.S. District Court for the Northern District of Illinois (Case No. 1:17-cv-02246).
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Contact Information
For more details or questions, claimants can contact the Claims Administrator at:
In re Walgreens Savings Club Litigation
Settlement Administrator
c/o A.B. Data Ltd.
P.O. Box 173067
Milwaukee, WI 53217
Phone: 877-888-8386
Email: [email protected]
If you are one of the many consumers or entities who purchased prescription drugs at Walgreens between 2007 and 2024 and used prescription insurance benefits, this settlement could provide you with compensation. Be sure to file your claim by the April 17, 2025 deadline to ensure you don’t miss out on a potential payout.
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