Walgreens to pay $2.8m to resolve allegations of overcharging

By Chris Reidy, Globe Staff

Walgreen Co., a national chain of more than 7,700 pharmacies, has agreed to pay $2.8 million to the Commonwealth of Massachusetts and to 75 Massachusetts cities and towns to resolve allegations that it overcharged public entities for prescription drugs, the office of Massachusetts Attorney General Martha Coakley said today.

Coakley alleged that Walgreens billed and received payment from cities, towns, and state agencies for filling prescriptions for workers compensation claimants at prices higher than those permitted by Massachusetts laws.

In a press release, Coakley estimated the alleged overcharges at $1.4 million since 2002. Walgreens has agreed to pay those “overcharges” as well as an additional $1.4 million to the Commonwealth, Coakley’s office said.

A Walgreens spokeswoman said, “We did not admit to any liability or wrongdoing and agreed to settle this issue to avoid further legal expense.”

Under the settlement, the city of Boston will receive about $200,000 in restitution, Coakley’s office said.

Coakley’s office noted that it has reached similar settlements with the CVS pharmacy chain as well as with supermarket chains Shaw’s and Stop & Shop.