Walgreens Faces Legal Battle Over Opioid Prescriptions

Walgreens Boots Alliance Inc. experienced a significant drop in its stock value, with shares falling more than 12% on Tuesday. This downturn came in the wake of a lawsuit filed by the United States Department of Justice. The legal action accuses Walgreens and its subsidiaries of dispensing millions of prescriptions, including those for "dangerous and excessive quantities" of opioids, without a legitimate medical purpose.

Potential Financial Repercussions for Walgreens

If found liable, Walgreens could be facing substantial financial penalties. The lawsuit stipulates that the company may have to pay up to $80,850 for each unlawful prescription that violated the Controlled Substances Act (CSA). Additionally, the company could be responsible for "treble damages and applicable penalties" for each prescription paid by federal programs in violation of the False Claims Act (FCA).

By 12:28 pm ET, the company's stock had plunged by 12.86%, selling for $10.91.