As one of the nation’s largest retailers, Target has more than 10 stores scattered across the Milwaukee metro area. The department store chain recently agreed to pay almost $3 million to resolve a whistleblower lawsuit that claimed the company violated Medicaid prescription rules prohibiting automatic refills.
The former Target pharmacist who filed the lawsuit in 2015 under the federal False Claims Act will receive $570,000 as his share of the settlement. His employment law attorney is slated to be paid $230,000 by Target for his work on the case.
According to the lawsuit, Target knowingly and routinely enrolled Medicaid beneficiaries in an auto-refill program, despite the fact that laws in at least 20 states ban the practice. In those states, Medicaid prescriptions can only be refilled with a specific request from the patient each time.
A statement from a U.S. Attorney’s Office said the “policy provides an important control against wasted or unnecessary prescriptions that are reimbursed by taxpayer funds.”
A Target spokesperson denied company wrongdoing, adding that the retail giant is “satisfied that this issue is now resolved.”
According to a news report, the federal government is to receive $1.5 million from Target. The False Claims Act enables private citizens to sue on behalf of the federal government to stop fraud committed by individuals or companies. Plaintiffs get a share of any monetary recovery.
You can stop fraud against U.S. taxpayers with the help of a whistleblower advocate. Contact Alan C. Olson & Associates, s.c. for more information.
