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nitpicker

(7,153 posts)
Sat Dec 23, 2017, 06:24 AM Dec 2017

Kmart Corporation to Pay U.S. $32.3 M to Resolve False Claims Act Allegations (drug overbilling)

https://www.justice.gov/opa/pr/kmart-corporation-pay-us-323-million-resolve-false-claims-act-allegations-overbilling-federal

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Friday, December 22, 2017

Kmart Corporation to Pay U.S. $32.3 Million to Resolve False Claims Act Allegations for Overbilling Federal Health Programs for Generic Prescription Drugs

Kmart Corporation, a wholly owned subsidiary of Sears Holdings Corporation (SHC), has agreed to pay $32.3 million to the United States to settle allegations that in-store pharmacies in Kmart stores failed to report discounted prescription drug prices to Medicare Part D, Medicaid, and TRICARE, the health program for uniformed service members and their families, the Justice Department announced today.

The agreement resolves allegations arising from a lawsuit brought under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery. The 2008 lawsuit, which was filed by James Garbe in the federal district in Los Angeles and later transferred to the Southern District of Illinois, alleged that Kmart pharmacies offered discounted generic drug prices to cash-paying customers through various club programs but knowingly failed to disclose those prices when reporting to federal health programs its usual and customary prices, which are typically used by those programs to establish reimbursement rates.
(snip)

The settlement agreement with the United States is a part of a global $59 million settlement that includes a resolution of state Medicaid and insurance claims against Kmart. Garbe, who litigated the case after the government declined to intervene in the action, will receive $9.3 million.
(snip)
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Kmart Corporation to Pay U.S. $32.3 M to Resolve False Claims Act Allegations (drug overbilling) (Original Post) nitpicker Dec 2017 OP
Took 9 years to settle HopeAgain Dec 2017 #1

HopeAgain

(4,407 posts)
1. Took 9 years to settle
Sat Dec 23, 2017, 08:23 AM
Dec 2017

The people who made the decision to falsely report are probably long gone from the company and doing the same elsewhere.

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