K-VA-T Food Stores, Inc., which does business as Food City, has settled allegations under the False Claims Act concerning its practices around the dispensing of opioids and other controlled substances for a substantial sum. The grocery chain, with headquarters in Abingdon, Virginia, will pay $8,488,378 to the United States and an additional $78,621 to Virginia and Kentucky, reports the Department of Justice.

The allegations stated that between January 1, 2011, and December 31, 2018, a total twenty-four Food City pharmacy locations dispensed controlled substances that were medically unnecessary or prescribed without a valid medical purpose. Consequently, Food City is accused of knowingly submitting false claims to federal healthcare programs. "Pharmacies that fill prescriptions for opioids and other controlled substances have an obligation to ensure that those prescriptions are medically necessary," Principal Deputy Assistant Attorney General Brian M. Boynton said, as stated by the Justice Department's announcement.

This settlement agreement resolves a whistleblower lawsuit brought under the qui tam provisions of the False Claims Act by K-VA-T Litigation Partnership, LLP. This provision allows private entities to sue on behalf of the United States and share in any recovery. The qui tam action, Cited as U.S. ex rel. K-VA-T Litigation Partnership, LLP v. K-VA-T Food Stores, Inc. d/b/a Food City, Case No. 3:20-cv-436 (EDTN), results in the claimant receiving $1,527,908 from...

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