Attorney General William Tong announced on Monday a $36.5 million settlement with CVS Pharmacy, Inc (CVS) between Connecticut, the United States, District of Columbia, and 35 other states, resolving allegations that CVS knowingly submitted or caused to be submitted false claims to the Medicaid program related to the dispensing of insulin pens.
As part of the settlement, up to $25,108,480.45 is allotted to the participating states’ Medicaid programs, consisting of up to $12,050,232.28 for the states and $13,058,248.00 for the United States. The portion of the multistate settlement attributable to Connecticut Medicaid is $1,089,945.85, of which the State only share is $633,913.76.
The settlement resolves the allegations set forth in five federal qui tam actions: United States ex rel. Azam Rahimi, et al. v. CVS Pharmacy, Inc., Case No. 18-cv-3047; United States and State of California ex rel. Wayne Wu v. CVS Health Corporation, CVS Pharmacy, Inc., Case No. 19-cv-11244; United States ex rel. Zimniski, et al. v. CVS Health Corporation, CVS Pharmacy, Inc., et al., Case No. 19-cv-1550; United States ex rel. Sergiu Strango, et al. v. CVS Health Corporation, CVS Pharmacy, Inc., and Target Corporation, Case No. 19-cv-8454; and, United States ex rel. RJA, LLP et al. v. CVS Pharmacy, Inc., Case No. 20-cv-3047. The qui tams alleged claims under the federal False Claims Act and various state false claims statutes that CVS submitted false claims related to over-dispensing of insulin...
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