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DEERFIELD, Ill. — According to published reports, Walgreens Boots Alliance (WBA) has suffered a setback in its legal dispute with PWNHealth after a federal court in Delaware ordered the chain to pay $988M to the telehealth company as an arbitration award for an alleged contract breach.
U.S. District Judge Richard Andrews issued the ruling on Monday after reviewing a petition filed by the pharmacy chain to vacate the award granted by the American Arbitration Association in March 2024 over the issue.
The dispute started in 2022 when PWNHealth, currently known as Everly Health Solutions, alleged that WBA breached contractual terms between the two firms when it sourced COVID-19 testing products from outside vendors.
"We are pleased with the Court's well-reasoned decision confirming the arbitration award, which resulted from a thorough, multi-year arbitration process," said an Everly Health spokesperson.
The American Arbitration Association issued a $988M financial award as monetary damages for the alleged claims, which WBA contested in a petition filed in a federal court in Delaware in March 2024.
"We are very disappointed that the court declined to set aside an arbitration award that clearly far exceeded the contractual cap on damages – and also, importantly, the arbitrator’s authority. We vigorously intend to seek review of this decision on appeal," said Fraser Engerman senior director, Media Relations & Issues Management at Walgreens.
