Kroger Accused of Overcharging for Generic Prescription Drugs

Kroger Co. engaged in a fraudulent scheme to overcharge customers with third-party insurance providers for purchases of generic prescription medications, according to a proposed class action filed Monday in a federal court in Ohio.

When filling prescriptions, Kroger sends third-party insurers a form on which it’s required to report its “usual and customary” price for the drug. The insurer sets the customer’s copay amount based on the U&C price, Judy Kirkbride said in her complaint to the U.S. District Court for the Southern District of Ohio.

Under contracts between Kroger and third-party insurers, copayments for a drug can’t exceed its ...