Kmart to Pay $59M in Drug Fraud Settlement
KMART SETTLES $59 MIL. LAWSUIT ALLEGING PRESCRIPTION DRUG FRAUD
(CNN) – Kmart is on the hook for $59-million over allegations of prescription drug fraud.
The company has settled a lawsuit brought by one of its pharmacists, James Garbe, nine years ago.
He claimed that Kmart was charging government-sponsored insurers more than other pharmacies for the same prescriptions.
According to the justice department, Kmart will pay more than $32-million in fines.
The rest of the money will go to Garbe’s estate, California and Illinois and Medicaid participating states.
The settlement does not involve an admission of wrongdoing by Kmart.
The pharmacist from Ohio has passed away since filing his lawsuit.