Walgreens Boots Alliance Inc (NASDAQ:WBA, ETR:W8A) is set for a hammering when the market reopens on Tuesday after being accused by the government of filling unlawful opioid prescriptions.
America’s US Justice Department late last week alleged the pharmacy chain had contributed to the opioid epidemic by filling millions of unlawful prescriptions.
Intervening in a Chicago federal court whistleblower lawsuit, the department said Walgreens ignored “red flags” over prescriptions for addictive painkillers and other drugs.
“These practices allowed millions of opioid pills and other controlled substances to flow illegally out of Walgreens stores,” Justice Department civil division head Brian Boynton said.
Walgreens has been accused of violating the Controlled Substances and False Claims acts, including by seeking federal health care reimbursement for such prescriptions.
The lawsuit was filed after Walgreens on Thursday launched its own challenge against new US Drug Enforcement Administration policies aimed at preventing pharmacies from dispensing controlled substances for medically illegitimate purposes.
“We will not stand by and allow the government to put our pharmacists in a no-win situation, trying to comply with “rules” that simply do not exist,” it said on Friday.
Shares were down 5% at US$12.52 in out-of-hours trading on Monday before the market’s reopening on Tuesday.