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Wisconsin pharmacy chain to pay $2 million to settle False Claims Act lawsuit

On Behalf of | Mar 31, 2022 | Whistleblowing |

Hayat Pharmacy, a chain with more than 20 different locations in and around Milwaukee, has agreed to pay more than $2 million after allegations that it violated the False Claims Act in 2019. While the pharmacy does not admit liability in this case, this settlement does resolve these allegations.

The allegations against Hayat Pharmacy

The claim against Hayat Pharmacy alleged that the company submitted false claims to Medicare and Medicaid in 2019. Medicaid reimbursed Hayat Pharmacy over $6,000 per tube of one medicine. Medicare reimbursement for the other medication amounted to hundreds per prescription.

The United States alleged that the pharmacy switched patients previously using lower-cost alternatives to these medications despite a lack of medical need. In some cases, the pharmacy allegedly made this change without a valid prescription for the new medicine.

In his statement regarding the case, Wisconsin Attorney General Josh Kaul acknowledged that false claims like those involved in these allegations place the interests of the pharmacy above the needs of the public. “Pharmacies must dispense medications when it’s medically appropriate,” said Kaul, “not for the sole purpose of increasing their profits.”

The terms of the settlement

The more than $2 million settlement involves payment to both the United States and to the State of Wisconsin. In addition, the pharmacy agreed to implement additional training for employees to ensure future compliance, with employees receiving training annually.

Cross Law Firm, S.C., represented the whistleblower in this action. Our nationally recognized firm is proud to provide trusted representation to whistleblowers and help them protect their careers as they seek justice, said managing attorney, Nola J. Hitchcock Cross.