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CVS Caremark will settle Medicaid drug fraud allegations

By Qui Tam

CVS Caremark Corp. has agreed to pay $36.7 million to settle claims it improperly switched patients from the tablet version of the prescription drug Ranitidine (generic Zantac) to a more expensive capsule version in order to increase Medicaid reimbursement.

This False Claims Act suit was originally filed as a whistleblower lawsuit by Bernard Listiza, a pharmacist, who will receive $4.3 million as his relator's share. The federal share of the settlement is approximately $21.1 million. Twenty-three states and the District of Columbia will share $15.6 million pursuant to separate settlement agreements, according to the press release issued on March 18, 2008 by the U.S. Dept. of Justice.

Full post as published by False Claims Act - Qui Tam on March 18, 2008 (boomark / email).