WASHINGTON, D.C. — Rite Aid Corporation has agreed to a $7.5 million settlement and will allow the Department of Justice (DOJ) to access nearly $402 million from its upcoming bankruptcy case to resolve allegations that it contributed to the opioid epidemic.
The DOJ case, brought on behalf of the Drug Enforcement Administration (DEA), the Department of Health and Human Services (HHS), and the Defense Health Agency, is one of many local, state, and federal suits against pharmacies, opioid manufacturers, and others accused of spurring opioid addiction nationwide.
The settlement addresses claims brought under the False Claims Act (FCA) by three former Rite Aid pharmacy employees: Andrew White, Mark Rosenberg, and Ann Wegelin. These whistleblowers will receive 17% of the DOJ’s recovery.
The allegations, detailed in a March 2023 complaint, accused more than 2,000 Rite Aid pharmacies of knowingly filling illegitimate prescriptions for opioids from May 2014 to June 2019. These prescriptions were allegedly not medically necessary, issued in excessive quantities, and for dangerously high doses. Despite alerts from Rite Aid pharmacists about suspicious prescribers, the company reportedly ignored these warnings and instructed managers to delete evidence of such alerts.
“Pharmacies and pharmacists have an affirmative legal duty to ensure that the prescriptions they fill are legitimate,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “When they ignore red flags indicating that prescriptions for addictive painkillers are invalid, they violate the public’s trust and harm the community they are supposed to serve — all to make a buck.”
The DOJ’s complaint against Rite Aid includes allegations of false claims, using false records and statements, unlawful dispensing of controlled substances, and unjust enrichment. The settlement, approved by the bankruptcy court on June 28, aims to address these issues and prevent further instances of illegitimate prescriptions.
As part of the settlement, Rite Aid has agreed to implement measures to prevent the unlawful dispensing of opioids. These measures include updated training for employees, retaining materials relevant to investigations for five years, and creating an anonymous hotline for reporting suspicious prescribing.
Principal Deputy Assistant Attorney General Brian M. Boynton emphasized the importance of holding pharmacies accountable in the fight against the opioid crisis. “Filling unnecessary prescriptions for powerful and addictive opioids takes a toll on our communities and violates the law,” he said.
DEA Administrator Anne Milgram also commented on the ongoing opioid crisis, stating, “Rite Aid contributed to this crisis by ignoring obvious red flags and dispensing hundreds of thousands of unnecessary opioids. DEA will continue to protect the health and safety of Americans and end the opioid epidemic.”
Rite Aid, which settled without admitting liability, has not commented on the settlement.