Virginia-based grocery store chain, Food City, agrees to $8M settlement over alleged improper opioid dispensing
ABINGDON, Va. (WRIC) -- Food City, a regional grocery store chain based in Virginia, has agreed to an $8,488,378 settlement after they were accused of improperly dispensing opioids and other controlled substances under the False Claims Act. According to a release from the U.S. Department of Justice (DOJ), a civil suit from the U.S. government alleged that, from 2011 to 2018, Food City store pharmacies sold opioids and controlled substances that were "medically unnecessary, lacked a legitimate medical purpose or medically accepted indication, and/or were not dispensed pursuant to valid prescriptions." "The United States alleges that, as a result, Food City knowingly submitted, or caused to be submitted, false claims to federal healthcare programs," the release reads. The claims were brought under the False Claims Act by K-VA-T Litigation Partnership, LLP -- which will now receive $1,527,908 of the proceeds of the settlement. In addition to the $8 million settlement, Food City will pay $78,621 to the states of Virginia and Kentucky for claims paid by each state's Medicaid programs. “Pharmacies that fill prescriptions for opioids and other controlled substances have an obligation to ensure that those prescriptions are medically necessary,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable pharmacies that have abdicated this responsibility and thereby contributed to the nation’s opioids crisis.”
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ABINGDON, Va. (WRIC) -- Food City, a regional grocery store chain based in Virginia, has agreed to an $8,488,378 settlement after they were accused of improperly dispensing opioids and other controlled substances under the False Claims Act.
According to a release from the U.S. Department of Justice (DOJ), a civil suit from the U.S. government alleged that, from 2011 to 2018, Food City store pharmacies sold opioids and controlled substances that were "medically unnecessary, lacked a legitimate medical purpose or medically accepted indication, and/or were not dispensed pursuant to valid prescriptions."
"The United States alleges that, as a result, Food City knowingly submitted, or caused to be submitted, false claims to federal healthcare programs," the release reads.
The claims were brought under the False Claims Act by K-VA-T Litigation Partnership, LLP -- which will now receive $1,527,908 of the proceeds of the settlement.
In addition to the $8 million settlement, Food City will pay $78,621 to the states of Virginia and Kentucky for claims paid by each state's Medicaid programs.
“Pharmacies that fill prescriptions for opioids and other controlled substances have an obligation to ensure that those prescriptions are medically necessary,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable pharmacies that have abdicated this responsibility and thereby contributed to the nation’s opioids crisis.”
