Background of the Class Action Lawsuit
Walgreens Class Action Settlement 2025: A large class action lawsuit was pending against Walgreens, a leading US pharmacy chain, regarding its liabilities. The lawsuit alleged that Walgreens did not incorporate its Prescription Savings Club (PSC) discount rates into its “usual and customary” (U&C) prices, causing insurers and consumers to unwittingly pay higher prices. The case was described as Russo et al. v. Walgreen Co. (Case No. 1:17-cv-02246) and was heard in the Northern District of Illinois court. After long speculations and legal complexities, Walgreens decided to settle for $100 million to avoid disputes. The settlement brought relief not only to insurers but also to individual customers who bore the burden of higher reimbursements.
U&C Prices and the Role of the PSC
“Usual and customary” prices are the rates that a pharmacy typically reports to insurance companies to get paid for a drug. These companies determine reimbursement based on these rates. Through Prescription Savings Club (PSC), Walgreens offered special discounts on certain drugs that were actually lower than the market rate.
- For example, if a drug was reported at $100 on the U&C rate but PSC members received it for $70, the insurance company would be reimbursed $100, while the PSC customer would only have to pay $70.
- This meant insurance companies would pay an additional $30.
This difference led to lawyers filing a lawsuit alleging that Walgreens was intentionally not including PSC’s lower prices in U&C, causing harm to both insurance companies and consumers.
Settlement Amount and Distribution Plan
The joint agreement was to create a fund with a total of $100 million. This amount would be divided into two parts:
- Individual Consumers—20% = $20 million
Consumers who paid more out of pocket and those who paid more despite the PSC reduction. - Third-Party Payors—80% = $80 million
These include insurance companies, employer health plans, and other organizations that made excess reimbursements based on U&C.
Each claimant will receive a share based on his or her documented expenses. For example, if an insurance company reimbursed $1 million annually at U&C rates, and total third-party payer expenses were $500 million, that company would be entitled to a proportion of that $1 million (1/500 × $80 million).
Eligibility Criteria Detailed
The following are eligible class members under the agreement:
Individual Consumers
- Who purchased at least one prescription drug from Walgreens.
- They purchased the drug through insurance (rather than paying out-of-pocket).
- The dates of these purchases must be between January 1, 2007 and November 18, 2024.
Third-Party Payers
- Insurance companies, employer health plans, or other organizations that participated in claims for reimbursement.
- The dates of these reimbursements must also be between January 1, 2007 and November 18, 2024.
Who Is Not Eligible?
- Those who paid full price out-of-pocket and did not use insurance benefits.
- Those who entered into a special negotiated price agreement with Walgreens that is not included in this class action.
- Walgreens employees, officers, directors, attorneys, or members of their families.
- Any other person or entity specifically excluded by the court.

How to Prepare Documents and Proof
Along with submitting the claim form, you must attach the following documents to prove your expenses:
- Receipts: Original receipts for prescription drug purchases.
- Bank statements or cancelled checks: Show that payment was made from your bank as per the receipt.
- Insurance statements: Explanation of Benefits (EOB) or reimbursement statement showing the amount reimbursed.
- Pharmacy records: Pharmacy records or invoices that record your prescription transactions.
When compiling these documents, make sure that the date, name of the drug, total amount spent, and method of payment (insurance vs. out-of-pocket) for each purchase is clearly indicated. Once the documents are ready, scan or photograph them and attach them to the claim form.
How to File a Claim
There are two ways to file a claim under the settlement:
Online Submission
- Visit the official settlement website SavingsClubSettlement.com.
- Click on the ‘File Your Claim’ section and fill out the form as instructed.
- Upload the scanned documents.
- You will receive a confirmation number after submission; keep it safe.
Mail Submission
- Download the claim form to send to the Settlement Administrator.
- Send the form with copies of the required documents and a cover letter.
- Mail to:
In re Walgreens Savings Club Litigation
Settlement Administrator
c/o A.B. Data Ltd.
P.O. Box 173067
Milwaukee, WI 53217
Important Deadlines
It is very important to file the claim form on time, otherwise you may lose your share:
- Exclusion & Objection Deadline: March 18, 2025
If you do not want to join the class or have an objection to the settlement, submit a written form by this date. - Claim Submission Deadline: April 17, 2025
Submit your form and documents. - Final Approval Hearing: September 10, 2025
At this hearing the court will finalize the settlement.
What Happens After You Submit a Claim?
After submitting the claim, the Settlement Administrator will review the documents you provided. If everything is found to be correct, you will be sent a payment as per your category:
- Direct deposit: Amount transferred to your bank account.
- Check by mail: If bank details are not available, a check will be sent to your address.
- Notification letter: You will receive a letter confirming payment details.
Detailed Examples
Example 1: Individual Consumer – Mrs. Sharma
Mrs. Sharma purchased her prescription drugs from Walgreens several times between 2015 and 2024 and had insurance pay each time. Her PSC discount rates were not included in the U&C. She submitted receipts, EOB statements, and bank statements. Her total documented payment was $2,000. Under the Settlement, she will receive a 20% share of the funds, calculated as (2,000 / total individual consumer costs) × $20 million.
Example 2: Third-Party Payer – Federal Employee Plan
A government employee health plan reimbursed $50 million at Walgreens U&C rates from 2008–2023. Under the Settlement, it will receive an 80% share of the funds, calculated as (50 million / total third-party payer costs) × $80 million.
Frequently Asked Questions (FAQs)
Q1: Is there a fee to file a claim?
A1: No, there is no fee to file a claim.
Q2: What happens if I submit the form after April 17, 2025?
A2: Any form you submit after that date will not be considered valid and you will not be eligible for the settlement.
Q3: Will the settlement payment be taxable?
A3: Generally, class action proceeds may be taxable. Consult a tax advisor to determine your situation.
Q4: Will the claim be different if I had a PSC card from Walgreens?
A4: PSC cardholders will be eligible if they overpaid at U&C rates.
Noteworthy Tips
- Check the documents carefully: receipts, bank statements, EOB statements—every document should be clear.
- Fill out the form on time: delays can lead to problems and denials.
- Check the settlement website: SavingsClubSettlement.com for periodic updates.
- Consult a class action lawyer: if your case seems complex, get professional advice.
Conclusion
The Walgreens Class Action Settlement 2025 brings significant relief to individuals and organizations who were forced to pay more due to the exclusion of Prescription Savings Club discount rates. If you have been using insurance benefits by purchasing medications from Walgreens between January 1, 2007 and November 18, 2024, you must file a claim by April 17, 2025 to be part of this settlement.
Have your documents ready, keep an eye on deadlines, and avoid scams. Also make sure your friends and family know about this opportunity so that no eligible person is left out. Visit SavingsClubSettlement.com now for more information and to file your claim.