K-VA-T Food Stores Inc., doing business as Food City, a regional grocery store chain headquartered in Abingdon, Virginia, has agreed to settle the government’s allegations under the False Claims Act (FCA) related to its dispensing of opioids and other controlled substances.
Under the settlement, Food City will pay the United States $8,488,378. Food City will pay an additional $78,621 to the states of Virginia and Kentucky for claims paid to Food City by state Medicaid programs.
“Pharmacies that fill prescriptions for opioids and other controlled substances have an obligation to ensure that those prescriptions are medically necessary,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable pharmacies that have abdicated this responsibility and thereby contributed to the nation’s opioids crisis.”
When pharmacies fill prescriptions for opioids and other powerful controlled substances without regard to their legitimacy or medical necessity, it significantly contributes to the opioid epidemic, causing great harm to our citizens and communities, said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee.
The United States alleged that, from Jan. 1, 2011, through Dec. 31, 2018, 24 Food City store pharmacies dispensed opioids and other controlled substances that were medically unnecessary, lacked a legitimate medical purpose or medically accepted indication, and/or were not dispensed pursuant to valid prescriptions.
K-VA-T Food Stores Inc., doing business as Food City, is headquartered in Abingdon, Virginia. The settlement includes the resolution of claims under the False Claims Act, and Food City will pay $8,488,378 to the United States and an additional amount of $78,621 to the states of Virginia and Kentucky.
The opioid epidemic continues to significantly impact the nation, devastating families across our country, said Special Agent in Charge Derek M. Holt of the Office of Personnel Management Office of the Inspector General.
Defendant: K-VA-T Food Stores Inc., a regional grocery store chain headquartered in Abingdon, Virginia.
Criminal Charges: False Claims Act allegations related to the dispensing of opioids and other controlled substances.
City and State: Abingdon, Virginia.
Exact Date: January 1, 2011, through December 31, 2018.
Sentence or Outcome: Food City will pay the United States $8,488,378 and an additional amount of $78,621 to the states of Virginia and Kentucky.
Dollar Amounts: $8,488,378 to the United States and $78,621 to the states of Virginia and Kentucky.
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Key Facts
- State: Virginia
- Category: Drug Trafficking|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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