The federal government has reached a $1.4 million settlement related to a 2013 whistleblower lawsuit initially brought by a Kansas City pharmacist.The Department of Justice argued that the subsidiary of Sears Holding Corp. "violated a federal prohibition against offering benefits to Medicare beneficiaries to influence their decisions about which pharmacies to use," Reuters reports. The activity took place from June 2011 to June 2014.
Kmart was accused of encouraging Medicare beneficiaries to fill prescriptions for brand-name drugs rather than generics. The allegations cited beneficiaries' use of drug manufacturer coupons to reduce co-pays, but effectively increasing the government's costs.
Joshua Leighr, a former pharmacist for Kmart, will receive a $248,500 payout from the successful legal action.
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