Author: Alex

(Hartford, CT) — Attorney General William Tong and 49 other attorneys general joined the U.S. Department of Justice in settling allegations against Walgreens Boots Alliance, Inc. and Walgreen Co. (together, Walgreens).  Under the terms of the agreement, Walgreens—which operates one of the largest retail pharmacy chains in the country from its headquarters in Deerfield, Illinois—will pay $97.8 million to resolve allegations that it unlawfully billed government health care programs for prescriptions that were never collected or otherwise received by patients. 

The settlement agreement will resolve allegations set forth in two qui tam lawsuits: United States ex rel. Turck, et al. v. Walgreens Boots Alliance, Inc., et al., No. 4:19-cv-315 (E.D. Tex. filed Apr. 26, 2019); and United States, et al. ex rel. Jacob v. Walgreens Boots Alliance, Inc., No. 8:20-cv-858-T-60TGW (M.D. Fla. filed Apr. 23, 2020).  These lawsuits specifically allege that between 2009 and 2020, Walgreens unlawfully billed Medicare, Medicaid, and other government health care programs for prescriptions drugs that were never picked up by beneficiaries.  As a result of this unlawful conduct, Walgreens received tens of millions of dollars for uncollected prescriptions that it never actually provided to patients.

After the suits were filed, Walgreens implemented enhancements to its billing systems designed to prevent any future unlawful billing for uncollected prescriptions. 

“For more than a decade, Walgreens unlawfully billed Connecticut and other states for prescriptions never provided to patients. I thank the whistleblowers for reporting these serious errors, enabling states to recover millions of dollars and ensuring that these illegal billing practices were stopped,” said Attorney General Tong.

Under the terms of the settlement agreement, Walgreens received credit for self-disclosing certain claims, and for previously refunding $66.3 million in connection with the settled claims.  The total recovery for all Medicaid programs under the settlement is $9.6 million.  Of that amount, the State of Connecticut will receive $728,083.37 in restitution and other recoveries. 

A National Association of Medicaid Fraud Control Units (NAMFCU) Team investigated the allegations in conjunction with the Department of Justice and United States Attorneys’ Offices in Texas and Florida.   The NAMFCU Team included representatives from the respective Office of the Attorney General for the states of Wisconsin, California, Texas, Maine, Oregon, and Massachusetts.  Paralegal Specialist Orlean Woodham and Deputy Associate Attorney General Gregory O’Connell, Chief of the Government Fraud Section, assisted the Attorney General with this matter.

(Hartford, CT – Attorney General William Tong is co-leading a 38-state and territory bipartisan coalition in urging Congress to take action to address the rise in organized retail crime across the country.

Organized retail crime has contributed to financial losses totaling over $121 billion in the U.S., and 76 percent of retail asset protection managers’ report their employees have suffered from violence at the hands of an organized retail criminal. Cargo theft remains a primary component of organized retail crime nationwide – disrupting supply chains and acting as an inflationary pressure on the price of everything from baby formula to clothing. 

“This is not run-of-the-mill shoplifting. These are criminal organizations who recruit desperate people to steal and stock sophisticated online fencing operations, driving up prices and endangering retail workers. Bipartisan attorneys general from across the country are united in urging Congress to empower state and federal law enforcement—both civil and criminal—with the resources and penalties needed to combat this growing problem,” said Attorney General Tong.

During the 118th Congress, the House and Senate introduced H.R.895/S.140 – Combating Organized Retail Crime Act of 2023 and S. 139 – Organized Retail Crime Center Authorization Act of 2023. This legislation would provide the necessary resources at the state and federal level to bring the organizations and individuals behind this nationwide problem to justice. Now, the coalition is urging the 119th Congress to re-introduce this bill to include increased federal penalties for supply chain thefts to act as a strong deterrent against the organized theft of goods in transit.

Several attorneys general have formed task forces and created prosecution units to combat this growing problem. In their letter, the coalition notes that legislation proposed in the 118th Congress would expand upon and synchronize state and federal efforts with the creation of an Organized Retail Crime Coordination Center at the Department of Homeland Security, facilitating the information sharing necessary to address the complex cross-border nature of organized retail crime.

The attorneys general from Connecticut, Georgia, Illinois, and South Carolina co-led the letter to Congress.

Joining them are the attorneys general from Alabama, Alaska, Arizona, Arkansas, Delaware, District of Columbia, Florida, Hawaii, Iowa, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, U.S. Virgin Islands, Washington, and West Virginia.