Rite Aid Settles Allegations Over Improper Opioid Dispensing

Rite Aid Corporation, one of the biggest names in the retail pharmacy industry, has reached a settlement following allegations of improper practices related to opioid dispensing. This settlement, announced by the U.S. Department of Justice, involves a total payment of $7.5 million to resolve claims under the False Claims Act  and Controlled Substances Act (CSA). 

From 2014 to 2019, Rite Aid allegedly dispensed hundreds of thousands of unlawful prescriptions for controlled substances across its extensive network of pharmacies. These prescriptions, which included opioids like oxycodone and fentanyl, were supposedly issued without legitimate medical purpose or by prescribers flagged internally as suspicious. This behavior, according to the government’s complaint, not only violated federal laws but also exacerbated the nationwide opioid crisis. 

In addition to the financial settlement, which includes a $401.8 million claim in Rite Aid’s bankruptcy case, the corporation has also agreed to make significant changes to their policies. These include enhanced oversight measures and employee training to detect and prevent unlawful dispensing practices. Rite Aid has also entered agreements with the Drug Enforcement Administration (DEA) and the Department of Health and Human Services Office of Inspector General (HHS-OIG) to uphold their new compliance efforts. 

Furthermore, Rite Aid will operate under a Corporate Integrity Agreement (CIA) with HHS-OIG, involving ongoing prescription drug claims reviews to ensure adherence to legal standards. This agreement aims to prevent future violations and strengthen internal controls within the company. 

Whistleblowers can play a critical role in identifying and reporting fraud which can lead to regulatory oversight in maintaining lawful practices. By bringing forward allegations of unlawful practices, whistleblowers can trigger investigations and legal actions that hold corporations accountable, ensure adherence to legal standards, and even be a key part of protecting the integrity of healthcare services for patients nationwide. 

If you have information about potential Healthcare or Pharmaceutical Fraud or would like to learn more about Whistleblower protections laws, you can speak to an experienced Constantine Cannon whistleblower lawyer team member. Please don’t hesitate to contact us for a free and confidential consultation. 

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