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- The Justice Department announced Wednesday that pharmacy chain Rite Aid (OTC:RADCQ) and its Elixir business agreed to pay $101M to settle allegations of falsely reporting drug rebate data to the Medicare Program.
- The deal resolves allegations that Rite Aid (OTC:RADCQ) and its subsidiaries, including its pharma benefits manager, Elixir, “improperly” reported some of the rebates it received from drugmakers as service fees between 2014 and 2020.
- “Rite Aid and its Elixir subsidiaries lined their corporate pockets with millions of dollars of manufacturer rebates that should have been reported to Medicare,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio.
- The settlement, which includes $20M due from Rite Aid’s (OTC:RADCQ) ongoing bankruptcy case, received court approval when U.S. bankruptcy judge Michael Kaplan approved the company’s reorganization plan in late June.
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