CVS Pharmacy faces a civil lawsuit from the Department of Justice for allegedly violating the Controlled Substances Act by filling unlawful opioid prescriptions from 2013. The complaint also accuses CVS of violating the False Claims Act. CVS disputes the allegations, stating all prescriptions were FDA-approved and written by licensed practitioners. The company’s stock initially saw a rise but remains down significantly year-to-date.
Acadia Healthcare Company Inc. has agreed to pay $16.6 million to resolve allegations of billing federal healthcare programs for unnecessary or non-compliant behavioral health services. The settlement comes after investigations into the company’s practices between 2014 and 2017, which included allegations of admitting ineligible patients, extended stays, inadequate staffing, and failing to meet federal and state standards. Despite the settlement, investigations into Acadia’s recent practices are ongoing.
Eli Lilly is facing a $183 million judgment for allegedly defrauding Medicaid by underreporting drug prices. The case highlights the complexity of Medicaid’s rebate system and raises concerns about the potential for unintended consequences for other regulated companies. The pharmaceutical giant is appealing the verdict, arguing that it adhered to its interpretation of the regulations.
Walgreens Boots Alliance has agreed to pay $106.8 million to settle allegations that it submitted false claims to government healthcare programs. The settlement resolves accusations that the pharmacy chain billed for processed prescriptions but never actually dispensed them to beneficiaries. The alleged fraudulent activity spanned from 2009 to 2020, with Walgreens collecting tens of millions of dollars for medications that never reached patients. As part of the settlement, Walgreens has implemented updates to its electronic pharmacy management system to prevent similar issues in the future.
