Federal Contracting News

Rite Aid Must Face Whistleblower Suit Alleging Drug Overbilling

April 1, 2019, 5:02 PM

Pharmacist and whistleblower Azam Rahimi may proceed with claims that Rite Aid Corp. violated the False Claims Act by overbilling government health-care programs for prescription drugs, a federal court said.

Rahimi adequately alleges a scheme under which Rite Aid charged Medicare, Medicaid, and TRICARE prices that significantly exceeded those it routinely offers other customers through a savings program, Judge Stephen J. Murphy of the U.S. District Court for the Eastern District of Michigan said.

Rite Aid allegedly charged the government more than the “usual and customary charge” it bills the general public for generic drugs while misrepresenting to those programs...

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