Judge Denies Whistleblower Opioid Settlement Cut

US District Judge Joan Lefkow ruled on Tuesday that she does not have the authority to grant a whistleblower a share of Walgreens' $4.7 billion opioid settlement. The settlement, finalized in 2022, resolved claims brought by more than two dozen U.S. states.

Pharmacist T.J. Novak, who had previously received a $25 million whistleblower award from the federal government, sought a portion of the state settlements. Judge Lefkow stated that Novak would need to pursue his claims in the individual state courts involved, as federal law did not grant her the power to order states to divert funds.

Novak's original federal lawsuit, filed in 2018, alleged that Walgreens filled illegal opioid prescriptions and sought reimbursement from government health programs. The U.S. government joined this case, leading to a $300 million settlement with Walgreens, of which Novak received over $25 million. The subsequent state settlements, totaling over $4.7 billion, were separate from the federal agreement. Judge Lefkow concluded that the complex legal questions involving the laws of twenty-eight states should be answered by their respective courts.