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Friday, April 24, 2026

Two Florida Pharmacies to Pay $7.4 Million to Resolve False Claims ... - Insurance Journal

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Jacksonville’s Smart Pharmacy, Inc., SP2, LLC, and owner Gregory Balotin have agreed to pay at least $7.4 million to resolve lawsuits filed in Jacksonville, Florida, alleging they violated the False Claims Act by adding the antipsychotic drug aripiprazole to topical compounded pain creams to boost reimbursement and by routinely waiving patient copayment obligations, the U.S. Department of Justice (DOJ) announced.

DOJ said the settlement amount is based on the defendants’ ability to pay and the claims against the defendants are allegations only; there has been no determination of liability.

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The lawsuits against the pharmacies were originally filed as whistleblower complaints by two former employees.

Aripiprazole, which is sold under the brand names Abilify, Abilify Maintena, and Aristada, is approved by the U.S. Food and Drug Administration to treat a number of psychological conditions such as schizophrenia and Tourette’s disorder. The government alleged that the defendants crushed aripiprazole pills approved for oral use and included them in compounded creams used topically for pain treatment, while knowing that there was not an adequate clinical basis to do so.

The defendants were alleged to have included the drug in the pain creams to increase their...



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