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Walgreens Settles Whistleblower Cases For $7.9 Million

Walgreens, a retail pharmacy chain based in Illinois, has agreed to pay the United States and participating states $7.9 million to resolve allegations that it violated the False Claims Act. The settlement resolves allegations initially brought by whistleblowers Cassie Bass, a former Walgreens pharmacy technician, and Jack Chin, an independent pharmacist. The whistleblowers brought separate actions under the qui tam provisions of the False Claims Act.

The whistleblowers alleged that Walgreens offered prohibited incentives to beneficiaries of government healthcare programs such as Medicare, Medicaid and TRICARE in the form of gift cards and other promotions to induce them to transfer their prescriptions to Walgreens.

The government alleged that Walgreens offered government healthcare beneficiaries $25 gift cards for prescriptions that they transferred from another pharmacy to Walgreens. Although Walgreen’s advertisements for the gift card promotion stated the offer was not valid with Medicaid, Medicare, TRICARE, or any other government program, the government alleged that Walgreen’s employees often ignored the exemption and gave the gift cards to customers who were beneficiaries of these programs in violation of federal law.

As their share of the settlement proceeds, the whistleblowers, or relators, will receive $1,277,172 as their reward.

If you have any firsthand knowledge, information, or evidence related to any federal, state, county or city government fraud, you should speak with an experienced qui tam lawyer who can help you understand your legal rights and help you obtain the compensation you deserve.

If you have a claim, contact the Florida whistleblower attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to kelly@mccaberabin.com.

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