Walgreens is asking a judge to overturn an arbitrator's $642 million award to Humana in a drug-pricing dispute between the companies.
The arbitrator issued the award to Humana in March after the companies arbitrated their dispute for more than three years, according to court records. Humana filed its arbitration demand in August 2019. Humana alleged that Walgreens submitted millions of falsely-inflated "usual and customary" prices, which resulted in the insurer being "significantly overcharged" and breaching their contracts.
Walgreens argued in its May 19 petition filed in Washington, D.C., federal district court that the arbitrator "rewrote the contract by applying language from a court decision rather than the parties' agreed definition" and accused the arbitrator of using a flawed model to assess damages.
The company also argued that the arbitrator "rewrote the contract by applying language from a court decision rather than the parties' agreed definition."
Humana in a separate filing May 19 asked the judge to confirm the arbitrator's award.
"There are no legally cognizable grounds upon which the Final Award may be vacated, modified, or otherwise challenged, or upon which recognition and enforcement of the final award may be refused," Humana argued in its filing.