Walgreens Boots Alliance Reaches $595 Million Settlement in Covid Testing Arbitration Dispute

Walgreens Boots Alliance, Inc. (NASDAQ: WBA) announced on February 24, 2025, that it has entered into a settlement agreement to resolve a commercial arbitration dispute with Everly Health Solutions, formerly known as PWNHealth LLC. The arbitration, which was initiated on June 10, 2022, centered on allegations by Everly Health that a longstanding agreement was breached when the Company in‑sourced certain enabling services related to the ordering and oversight of Covid testing.

In March 2024, an arbitrator issued a final award totaling $988 million, including pre‑award interest. Walgreens disputed the award, arguing that a contractual cap limited damages to $79 million. The dispute led to a petition filed in a Delaware federal court by the Company seeking to vacate the award, while Everly Health pursued confirmation of the claim. However, on February 10, 2025, the court upheld the arbitration award by granting Everly Health’s motion to confirm the award and denying Walgreens’ request to vacate it.

Seeking to curtail the further accrual of post‑award interest and avoid the uncertainty and costs associated with prolonged litigation, Walgreens entered into a settlement agreement with Everly Health on February 24, 2025. Under the terms of the agreement, Walgreens will pay $595 million within two business days. The settlement fully resolves all claims related to this dispute without any admission of wrongdoing or liability by the Company.

This development marks a significant effort by Walgreens Boots Alliance to manage its litigation exposure and associated financial risks as it moves forward amid ongoing industry challenges.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Walgreens Boots Alliance’s 8K filing here.

Walgreens Boots Alliance Company Profile

Walgreens Boots Alliance, Inc operates as a healthcare, pharmacy, and retail company in the United States, the United Kingdom, Germany, and internationally. It operates through three segments: U.S. Retail Pharmacy, International, and U.S. Healthcare. The U.S. Retail Pharmacy segment engages in operation of the retail drugstores, health and wellness services, specialty, and home delivery pharmacy services, which offers health and wellness, beauty, personal care and consumables, and general merchandise.