Walgreens ordered to pay $987M in COVID-19 testing dispute

A federal judge ruled that Walgreens must pay $987 million to the virtual care company PWNHealth, upholding an arbitration award following a breach-of-contract dispute. 

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At the beginning of the COVID-19 pandemic, Walgreens partnered with PWNHealth to facilitate physician-ordered COVID-19 tests for customers. However, when regulations shifted, Walgreens allegedly began to use its own pharmacists to order tests through the same system without consulting with PWNHealth, according to court documents obtained by Becker’s

In addition, PWNHealth is alleging Walgreens continued to display its branding on the website. In 2022, PWN Health filed for arbitration, arguing breach of contract, along with other claims. Walgreens challenged the decision in a Delaware federal court, arguing that the damages should have been capped at $79 million. 

The judge rejected Walgreens’ appeal, upholding the original arbitration award amount. 

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