Crowell & Moring Accused of Conflicts In Claim by Former Client Walgreens

WASHINGTON -- A lawsuit against Crowell & Moring is moving ahead after a Washington, D.C. judge rejected the law firm’s motion to dismiss former client Walgreen & Co.’s claim of double dealing.

The lawsuit in D.C. Superior Court accuses Crowell & Moring of using information from its previous representation of Walgreens to help a different client who now is adverse to the pharmacy chain.

Crowell & Moring is representing health insurer Humana Inc. in an arbitration against Walgreens.

Several years ago, Crowell & Moring represented Walgreens in claims over its prescription drug savings program. The Justice Department accused the company of paying kickbacks to Medicare and Medicaid beneficiaries who purchased all their drugs at Walgreens.

Now, Crowell & Moring represents Humana in its allegation that Walgreens misrepresented its “usual and customary” drug prices to the health insurer.

Crowell & Moring’s motion for dismissal argues the issues are so different and the length of time so great, that it gained no special knowledge that would help Humana against Walgreens.

D.C. Superior Court Judge Hiram Puig-Lugo disagreed, ruling that “Walgreen has set forth sufficient facts in the amended complaint to support a claim for breach of fiduciary duty that is plausible.”

However, he added that Walgreens must make its argument for disqualifying Crowell & Moring in the ongoing arbitration rather than a separate lawsuit.

Walgreens wants the trial court to take away Crowell & Moring’s legal fees in the arbitration and require the firm to indemnify the company for any damages it is ordered to pay “as a result of Crowell’s breach of its fiduciary duty.”

The case is Walgreen Co. v. Crowell & Moring LLP, Superior Court of the District of Columbia, No. 2021-0861.

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