In a dramatic turn of events, Walgreens Boots Alliance Inc. has agreed to a $595 million settlement with Everly Health Solutions, formerly known as PWNHealth, to resolve a contentious dispute over COVID-19 testing contracts. This settlement, disclosed in a recent U.S. Securities and Exchange Commission filing, comes on the heels of a Delaware federal judge’s decision upholding a nearly $1 billion arbitration award in favor of Everly Health.
A Legal Battle Unfolds
The origins of this high-stakes legal confrontation trace back to a 2020 agreement during the height of the COVID-19 pandemic. Walgreens had partnered with PWNHealth to utilize its physician network for processing COVID-19 tests requested through Walgreens’ website. However, as regulatory landscapes shifted, Walgreens began diverting these tests to its in-house operations, a move that Everly Health contended was a breach of their exclusive contract. This alleged contractual violation led Everly Health to initiate arbitration proceedings in 2022.
