A settlement between CVS Caremark Corporation, the United States, and several states was approved by a Federal District Court in Northern Illinois. Between 1999 and 2006, CVS was alleged to substitute capsule of Ranitidine for tablets for Medicaid prescriptions, allowing them to evade the Federal Upper Limit pricing for Ranitidine tablets. This caused over-billing.
The settlement allowed CVS to deny wrongdoing or violation of state or federal law. The settlement sent $21 million to the federal government, $15.6 million to state plaintiffs, and $4.3 million to the qui tam relator, a part-time pharmacist of CVS.
I have experience in these cases and they can be very lucrative for persons who are aware of overbilling or other corporate fraud.
Expect a big announcement in the coming days.
