HUM - Walgreens reaches $360M settlement with Humana in drug-pricing dispute
2024-01-09 06:37:22 ET
Walgreens ( NASDAQ: WBA ) has agreed to pay Humana ( NYSE: HUM ) $360M in settlement for a lawsuit that alleged that the retail-pharmacy chain overcharged for prescription-drug reimbursements.
The settlement was disclosed in a securities filing last week.
Walgreens ( WBA ) is facing a number of claims, lawsuits and investigations that allege that the company's retail pharmacies overcharged for prescription drugs by not submitting the correct usual and customary price during the claims adjudication process.
In one such case, Humana ( HUM ) initiated an arbitration before the American Arbitration Association, wherein the arbitrator issued an $642M award in its favor.
Although Walgreens ( WBA ) asked a federal court to vacate that award, on December 29, 2023, the parties reached an agreement for the settlement of the Humana ( HUM ) dispute for $360M, of which $150M was paid off in December 2023.
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Walgreens reaches $360M settlement with Humana in drug-pricing dispute