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DEERFIELD, Ill. — Reports indicate that Walgreens Boots Alliance (WBA) has faced a setback in its legal battle with PWNHealth, as a federal court in Delaware has directed the chain to pay $988 million to the telehealth company due to an arbitration award concerning an alleged breach of contract.
On Monday, U.S. District Judge Richard Andrews ruled after examining the pharmacy chain's petition to annul the American Arbitration Association's March 2024 award regarding the matter.
The dispute began in 2022, when PWNHealth, now known as Everly Health Solutions, claimed that WBA violated contract terms by sourcing COVID-19 testing products from external vendors.
In March 2024, WBA filed a petition in a Delaware federal court contesting the American Arbitration Association's $988M financial award for the alleged claims.
"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.
