Walgreens Generic Prozac & Zantac Scheme Class Action lawsuit

Workers union UFCW has filed a class action lawsuit against Walgreens, claiming it illegally filled prescriptions for generic Zantac and Prozac with co-defendant Par Pharmaceuticals’ higher-priced drugs.

United Food and Commercial Workers International Union (UFCW) alleges in the class action lawsuit that Walgreens and Par “engaged in at least two widespread schemes to overcharge insurance companies, self-insured employers and union health and welfare funds for the generic versions of Zantac, Prozac and other drugs.”

According to the class action lawsuit, Walgreens and Par establishing a partnership whereby Par manufactured and marketed generic versions of Zantac and Prozac, ranitidine and fluoxetine, in dosage forms that were not subject to strict private and governmental reimbursement limitations.

“Walgreens purchased these dosage forms from Par — at a cost substantially higher than the widely prescribed dosage forms — and systematically and unlawfully filled its customers’ prescriptions with Par’s more expensive products, rather than the inexpensive dosage forms that were prescribed by physicians,” the class action lawsuit states.

Even though pharmacies cannot legally change a prescription without a physician’s express authorization, the class action lawsuit claims Walgreens filled prescriptions for the lower-priced tablets with much more expensive capsules manufactured by Par.

“As a result of this unlawful conduct, Plaintiff and other third-party payors paid two to four times more than they would have had the prescriptions been filled as written.”

In 2008, Walgreens agreed to pay $35 million the U.S. government, 42 states and Puerto Rico for overcharging state Medicaid programs by filling prescriptions with the more expensive dosage forms of ranitidine and fluoxetine.

Three years later, in 2011, a whistleblower lawsuit against Par was unsealed “revealing the details and internal workings of Walgreens’ and Par’s schemes, including documents demonstrating the nature and extent of Walgreens’ and Par’s fraudulent activities,” the class action lawsuit states.

The Walgreens prescription class action lawsuit is brought on behalf of all third-party payors (including insurance companies, employers and union health and welfare funds) in the U.S. and its territories that, during the period from July 1, 2001 through 2006, paid and/or reimbursed for all or part of prescriptions filled at Walgreens with (a) 150-mg and 300-mg ranitidine capsules; and/or (b) 10-mg and 20-mg fluoxetine tablets.

It is seeking triple the amount of compensatory damages awarded, in addition to court costs and attorneys’ fees.

A copy of the Walgreens and Par Pharmaceuticals Prozac and Zantac Scheme Class Action Lawsuit can be read here.
 
The case is UFCW v. Walgreen Company, Par Pharmaceutical Companies, Inc., et al., U.S. District Court, Northern District of Illinois, Eastern Division.