TBA Law Blog


Posted by: Julia Wilburn on Dec 23, 2024

Regional grocery chain K-VA-T Food Stores, known as Food City, has agreed to settle government allegations under the False Claims Act (FCA) related to its dispensing of opioids and other controlled substances. The lawsuit alleges that, from 2011 through 2018, 24 Food City store pharmacies dispensed opioids and other controlled substances that were medically unnecessary, lacked a legitimate medical purpose or medically accepted indication, and/or were dispensed to invalid prescriptions, and that, as a result, Food City submitted false claims to federal health care programs. Under the settlement, Food City will pay the United States $8,488,378, and will pay an additional $78,621 to the states of Virginia and Kentucky for claims paid to Food City by state Medicaid programs. Food City reached a similar settlement with Tennessee in 2023. Read more in a press release from the U.S. Attorney’s Office for the Eastern District of Tennessee.