Walgreens, a major U.S. pharmacy chain, has agreed to a $100 million settlement following allegations it overcharged insurers and consumers for prescription medications. The class action lawsuit claims that Walgreens misrepresented the actual cost of its drugs by excluding lower prices offered through its Prescription Savings Club (PSC), leading to inflated reimbursements from insurance providers and third-party payors.
Although Walgreens denies any liability or wrongdoing, the company agreed to the settlement to avoid the uncertainty, cost, and duration of prolonged litigation.
The Case Background: Allegations of Overcharging
Filed in the U.S. District Court for the Northern District of Illinois, the case—Russo et al. v. Walgreen Co., Case No. 1:17-cv-02246—accuses Walgreens of deliberately excluding its PSC prices when reporting its “usual and customary” (U&C) rates to insurers. These U&C prices are critical because they form the basis of what insurers reimburse pharmacies.
The plaintiffs argue that the real, lower PSC prices should have been factored into U&C pricing. By omitting these prices, Walgreens allegedly caused payors—including insurance companies, employer-funded health plans, and patients—to overpay for prescription drugs between January 1, 2007, and November 18, 2024.
Walgreens’ Position on the Settlement
Despite the settlement agreement, Walgreens maintains its innocence. The company asserts that its pricing practices complied with all regulatory requirements and that its PSC program was lawful and clearly communicated to customers.
Walgreens emphasized that settling was a strategic decision to resolve the dispute efficiently and avoid the costs of continuing legal battles, not an admission of misconduct.
Who Can File a Claim?
The settlement applies to a broad group of affected parties, including:
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Individual consumers who used insurance to purchase prescription drugs at Walgreens.
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Third-party payors such as health insurance companies and employer-sponsored health plans.
To be eligible, the following criteria must be met:
| Eligibility Criteria | Details |
|---|---|
| Time Period | Purchases made between Jan 1, 2007, and Nov 18, 2024 |
| Purchase Type | Prescription drugs bought using insurance benefits |
| Pharmacy | Purchases must be from Walgreens locations |
Who Is Not Eligible?
The following groups are excluded from receiving a settlement payment:
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Consumers who paid entirely out-of-pocket without using insurance.
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Insurers or employers with direct negotiated pricing with Walgreens.
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Walgreens employees, legal representatives, or anyone involved in the defense.
Distribution of the $100 Million Settlement Fund
The $100 million fund will be distributed proportionally based on how much each claimant paid or reimbursed during the relevant period.
| Recipient Category | Share of Net Settlement Fund | Basis of Compensation |
|---|---|---|
| Individual Consumers | 20% | Based on verified out-of-pocket costs for eligible prescriptions |
| Third-Party Payors | 80% | Based on documented reimbursements for eligible prescriptions |
Each claimant’s share will be calculated from the net fund after legal and administrative expenses.
How to Submit a Claim for Compensation
Eligible individuals and organizations can file claims either online or by mail. Proof of prescription purchases or reimbursements is required.
Required Documentation:
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Pharmacy receipts
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Bank statements or check copies
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Insurance Explanation of Benefits (EOB) forms
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Pharmacy transaction records
Submission Options:
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Online: Visit SavingsClubSettlement.com
Important Dates to Remember
| Event | Deadline |
|---|---|
| Opt-Out / Objection Deadline | March 18, 2025 |
| Final Claim Submission Date | April 17, 2025 |
| Final Approval Hearing | September 10, 2025 |
Final Thoughts
While Walgreens has not admitted to any illegal activity, the $100 million settlement marks a significant resolution in a years-long legal battle over prescription drug pricing practices. For consumers and third-party payors who may have unknowingly paid inflated costs, this is a chance to recoup a portion of those expenses.
Time is limited—eligible parties must file claims before April 17, 2025 to be considered.
For full claim instructions and support, visit SavingsClubSettlement.com or contact the Settlement Administrator at 877-888-8386 or info@SavingsClubSettlement.com.
FAQs
What is the Walgreens Prescription Savings Club (PSC)?
The PSC is a membership program offering discounted prescription prices to customers paying out-of-pocket. The lawsuit claims Walgreens failed to factor these discounted prices into what it reported to insurance providers.
Who qualifies for the Walgreens class action settlement?
Anyone who used insurance to buy prescription drugs from Walgreens between January 1, 2007, and November 18, 2024, may be eligible—unless they fall into the excluded categories.
How much money will I receive?
Compensation will vary depending on how much you spent or your insurance plan reimbursed during the eligibility period. The amount is calculated proportionally from the net settlement fund.
Is this a scam?
No. This is an official, court-approved class action settlement. To verify or participate, visit the official site at SavingsClubSettlement.com.
What if I don’t have receipts?
You may use other forms of documentation, such as insurance statements or pharmacy transaction records. If you’re unsure, contact the Settlement Administrator for help.
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