Walgreens has agreed to pay $100 million to settle a class-action lawsuit accusing the company of overcharging insured customers for generic drugs. This settlement could provide financial relief to millions of customers who purchased prescription drugs at Walgreens using insurance benefits between January 1, 2007, and November 18, 2024.
Here’s everything you need to know about the lawsuit, who qualifies for compensation, and how to file your claim.
Background of the Lawsuit
The lawsuit, filed in 2017, alleged that Walgreens engaged in a dual-pricing scheme that unfairly charged insured customers higher prices for generic medications compared to members of its Prescription Savings Club (PSC).
The PSC, which began in 2007, offered discounted prices on over 500 widely prescribed generic drugs. Members paid an annual fee of $20 for individuals or $30 per family and received generic drug prices as low as $5, $10, or $15 for a 30-day supply and $10, $20, or $30 for a 90-day supply.
The problem? Walgreens reportedly failed to report these discounted PSC prices as its “usual and customary” rates to insurance companies. As a result, insured customers were charged higher copays and deductibles, often exceeding the out-of-pocket costs that cash-paying PSC members incurred.
Key Settlement Details
As part of the settlement, Walgreens has agreed to:
- Pay $100 Million: The settlement fund will compensate eligible claimants after deducting legal fees and administrative costs.
- Terminate the PSC Program: Walgreens will end the Prescription Savings Club by December 31, 2024 to prevent future pricing discrepancies.
Who Qualifies for Compensation?
You may be eligible for compensation if:
- You purchased prescription drugs at Walgreens using insurance benefits, including private insurance, Medicare, or Medicaid.
- Your purchase occurred between January 1, 2007, and November 18, 2024.
Both individual customers and third-party payors (e.g., health insurers) who incurred overcharges during this period are included in the settlement.
How Much Will You Receive?
The settlement fund will be divided as follows:
- 20% of the net settlement fund is allocated to individual claimants.
- 80% is designated for third-party payors.
Payments to individual claimants will be calculated based on how much they overpaid for generic prescriptions compared to PSC prices. The exact amount will depend on the number of claims filed and the documented overcharges.
How to File a Claim
Filing your claim is straightforward. Here’s what you need to do:
- Claims under $10,000 may not require documentation for known claimants.
- Visit the official settlement website, SavingsClubSettlement.com, to fill out the claim form.
- Ensure your form is submitted online or mailed to the settlement administrator by April 17, 2025.
Important Dates
- Claim Filing Deadline: April 17, 2025
- Exclusion/Objection Deadline: March 18, 2025
- Final Approval Hearing: September 10, 2025
What Happens Next?
If the court approves the settlement, payments will be distributed to eligible claimants following the Final Approval Hearing on September 10, 2025. You can stay updated on the settlement status by visiting the official website or contacting the settlement administrator.
