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Walgreen's settles Medicaid drug fraud allegations

By Phillips & Cohen LLP

Walgreen Co. has agreed to pay $35 million to settle claims that it improperly switched patients to different versions of the prescription drugs Ranitidine, Fluoxetine and Eldepryl in order to increase its reimbursement from Medicaid,.

The Dept. of Justice press release noted that this was the third settlement with a company that had engaged in improper drug switching.

The whistleblower who originally brought the suit will receive approximately $5 million as his share of the federal and state settlements. The federal share of the settlement is approximately $18.6 million. Forty-six states and Puerto Rico will share approximately $16.4 million under separate settlement agreements.

Full post as published by False Claims Act - Qui Tam on June 10, 2008 (boomark / email).