The Scoop: Walgreens makes fiery statement after settling $300M opioid case
Arlington Heights, IL, USA – September 2, 2013: Exterior of a Walgreens drug store on a summer day
Walgreens has agreed to pay $300 million, plus interest, to settle allegations from U.S. prosecutors that it illegally filled millions of invalid opioid prescriptions.
Despite agreeing to the payout, the company “strongly disagrees with the government’s legal theory and admits no liability,” spokesperson Fraser Engerman told Reuters.
The statement also doubled down on the company’s trust in its pharmacists: “Our pharmacists are dedicated healthcare professionals who care deeply about patient safety and continue to play a critical role in providing education and resources to help combat opioid misuse and abuse across our country.”
This statement creates a notable cognitive dissonance as Walgreens is simultaneously paying a significant settlement while denying wrongdoing. But it’s necessary given the company’s need to protect its image, and brand value, at a time of tremendous change.
Beyond the company’s value plunging about 50% over the past year, per the Reuters report, Walgreens accepted an acquisition deal by Sycamore Partners in March. That makes restoring confidence internally and externally crucial to stabilizing its brand and business.
Why it matters: For PR and comms pros, there’s a big takeaway here: When a brand’s frontline workers are the brand, you have to protect their reputation fiercely, even in the middle of a legal settlement.
The company’s “we’ll pay it but we’re not at fault and our team is strong” messaging may feel like a contradiction, but it’s a deliberate move.
If the public loses confidence in the professionalism of Walgreens’ pharmacists, it could spiral into an even bigger problem beyond the stock hits it already experienced. Also, when a company is about to go through major changes like a buyout, crisis messaging needs to set the stage for a comeback story.
Good crisis comms isn’t just about surviving the bad headlines. It’s about helping the next chapter start on stronger ground.
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Casey Weldon is a reporter for PR Daily. Follow him on LinkedIn.