A federal judge in Delaware has ordered Walgreens Boots Alliance to pay $987 million to Everly Health Solutions, formerly known as PWNHealth, following an arbitration dispute related to a COVID-19 testing services contract. The arbitration award stems from claims that Walgreens breached the terms of a 2020 business contract during the pandemic. Walgreens contended that the award was excessively high, arguing it was twelve times the maximum damages of $79 million stipulated in the contract and would represent the largest award under federal false advertising law protecting trademarks. In a separate development, a subsidiary of UnitedHealth has agreed to pay over $20 million to settle a lawsuit from the Department of Labor, which accused it of violating federal benefits law and its own health plan policies by rejecting claims for emergency room services and drug tests. Additionally, UnitedHealth has hired a defamation law firm to address social media criticisms of the company.
Walgreens argued that the $987 M award was "12 times the maximum of $79 million in damages allowed under the contract between the two companies. It said the award would be the largest-ever under a federal false advertising law that protects trademarks." $WBA https://t.co/GPnsjgyN4g
PWNHealth, which does business as Everly Health Solutions, initiated the arbitration in '22, claiming that Walgreens broke the terms of a '20 business contract during the pandemic $WBA. "Walgreens had used Everly’s physician network to order Covid-19 tests that customers… https://t.co/GPnsjgyfeI
Walgreens is ordered to pay $987M to satisfy an arbitration award won by telemedicine provider PWNHealth, a federal judge in Delaware ruled on Monday $WBA. PWNHealth is a subsidiary of Everly. h/t @boltyboy https://t.co/LYngcGdvFm https://t.co/KEe0bvjdme