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CVS Pays $17.5M To End False Claims Act Suit

Law360 (April 15, 2011, 7:07 PM EDT) -- CVS Pharmacy Inc. has agreed to pay $17.5 million to resolve allegations that it duped government insurance programs in 10 states into reimbursing the pharmacy more than it was owed, the U.S. Department of Justice said Friday.

The DOJ said the agreement would resolve a qui tam action filed under the federal False Claims Act and similar state laws. The government was tipped off by Stephani LeFlore, a CVS pharmacist in St. Paul, Minn., who will collect $2.59 million of the total amount.

Ten states are...
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