Retail pharmacy giant Walgreen Co must pay more than $987 million to satisfy an arbitration award won by telemedicine provider PWNHealth, a federal judge in Delaware ruled on Monday.

Walgreens must pay more than $987 million as part of an arbitration award won by a virtual care company, a federal judge ruled Monday. | Walgreens said it is closely evaluating its legal rights and options to challenge both the award and the amount of damages on appeal.

Walgreens (WBA) faces a $988M penalty after a court ruling in its legal battle with PWNHealth over an alleged contract breach. Read more here.

In 2024, the arbitrator issued a $988 million award to PWNHealth. Walgreens disputed the alleged claims and the amount of the award because it was in “contravention of a contractual cap on damages in the agreement, which limits damages to $79 million,” Walgreens said in a filing with the U.S. Securities & Exchange Commission.