Walgreens has agreed to settle an arbitration dispute with Everly Health Solutions for $595 million, following a previous arbitration award of $988 million that the company had contested. The settlement, disclosed in a Securities and Exchange Commission filing, aims to prevent further interest accrual and litigation expenses. Walgreens clarified that the agreement does not imply any admission of wrongdoing or liability. The arbitration case stemmed from a contract dispute where Everly claimed exclusive rights to provide COVID testing services, alleging Walgreens breached the contract by bringing some services in-house. Walgreens argued that the contract capped damages at $79 million.
Meanwhile, reports resurfaced about Sycamore Partners exploring a potential buyout of Walgreens, with efforts to secure $10 billion in financing from Morgan Stanley, UBS, and private lenders. Discussions of a buyout first emerged in December, continuing long-standing speculation about Walgreens going private. The company has been collaborating with Perella Weinberg Partners and AlixPartners to restructure operations and improve its balance sheet. Additionally, Walgreens previously announced plans to close 1,200 stores and divest its stake in Village Medical as part of its strategic efforts to streamline operations.
