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Rite-Aid pays nearly $3 million over gift card kickback allegations

December 8th, 2014 | No Comments

On December 3, the Department of Justice announced that Rite-Aid Corp. had agreed to pay $2.99 million to settle a whistleblower’s allegations that the company violated the antikickback statute and submitted false claims by handing out gift cards to customers who switched their prescriptions to the chain’s stores. According to DOJ’s press release:

Rite Aid Corporation, a Delaware corporation and national retail drugstore chain with its principal place of business in Camp Hill, Pennsylvania, has paid the United States $2.99 million to resolve allegations that it violated the False Claims Act by inappropriately using gift cards as inducements, the Department of Justice announced today.

The settlement resolves allegations that Rite Aid offered illegal inducements to Medicare and Medicaid beneficiaries to transfer their prescriptions to Rite Aid pharmacies. The government alleged that from 2008 to 2010, Rite Aid had knowingly and improperly influenced the decisions of Medicare and Medicaid beneficiaries to transfer their prescriptions to Rite Aid pharmacies by offering them gift cards in exchange for their business.

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DOJ announced that the whistleblower will receive $508,300 (a 17% share).

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