Federal prosecutors in Boston announced a $10 million settlement Tuesday with Andover-based Injured Workers Pharmacy over allegations that the nationwide retail pharmacy improperly filled prescriptions for controlled substances.
The U.S. Attorney’s Office for the District of Massachusetts said the pharmacy, one of the largest opioid buyers in the country, also submitted false claims for payment to the U.S. Department of Labor.
As part of the settlement agreement, the company agreed to a five-year corrective action plan with the Drug Enforcement Administration.
Prosecutors said the company admitted that between 2014 and 2019 it failed to address “red flag” prescriptions, or those that include high opioid doses, early refills and dangerous drug combinations, before dispensing them to injured workers who received benefits through it federal workers compensation program.
The company said claims employees routinely informed the Labor Department that the company consulted with prescribers about drug use reviews in cases involving flagged prescriptions, but in reality it did not, according to prosecutors.
As part of the settlement, the DEA is allowed to conduct unannounced, warrantless inspections.