Duane Reade Settles Medicaid Fraud Suit

Law360, New York (April 27, 2011, 7:47 PM EDT) -- Duane Reade Inc. agreed Wednesday to pay $369,744 to settle claims that it paid kickbacks to doctors and submitted false claims to the New York Medicaid program.

The settlement, which was approved Wednesday by U.S. District Judge Richard Sullivan, ended a 2007 qui tam action that accused the drug store company of violating the False Claims Act and the Federal Anti-Kickback Statute. The action accused Duane Reade of paying physicians to install kiosks allowing patients to preorder their drug prescriptions from Duane Reade while at the...
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