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Walgreens to pay $595 million to settle COVID test contract dispute
FILE PHOTO: Signage is seen outside of a Walgreens, owned by the Walgreens Boots Alliance, Inc., in Manhattan, New York City · Reuters

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(Reuters) -Walgreens said it had entered into a settlement agreement with telemedicine provider Everly Health Solutions as part of which the pharmacy chain operator will pay the company $595 million over a contract dispute for COVID-19 testing.

The settlement, payable within two business days, comes after a judge in Delaware recently ruled against Walgreens' bid to set aside an arbitration ruling. Walgreens had faced paying a substantially higher amount, nearly $1 billion.

Everly Health, formerly known as PWNHealth, initiated the arbitration in 2022, claiming that Walgreens broke the terms of a 2020 business contract during the pandemic.

Walgreens had used Everly's physician network to order COVID-19 tests that customers requested on Walgreens' website, according to court filings.

(Reporting by Sneha S K in Bengaluru)