Richmond, VA – Food City, a regional grocery store chain operating in Virginia, has agreed to a settlement of $8,488,378 after being accused of improperly dispensing opioids and other controlled substances. The allegations, which were outlined in a civil lawsuit filed by the U.S. government, claim that Food City pharmacies sold opioids and other controlled substances from 2011 to 2018 in violation of federal regulations.
According to the U.S. Department of Justice (DOJ), the government accused Food City of filling prescriptions that were either “medically unnecessary, lacked a legitimate medical purpose, or were not dispensed pursuant to valid prescriptions.” The suit further alleged that as a result of these actions, the company knowingly submitted false claims to federal healthcare programs, in violation of the False Claims Act.
The case was brought under the False Claims Act by K-VA-T Litigation Partnership, LLP, a private entity that will receive $1,527,908 of the settlement funds. Additionally, Food City has agreed to pay $78,621 to the states of Virginia and Kentucky for Medicaid-related claims, covering costs incurred by the states’ healthcare programs.
Principal Deputy Assistant Attorney General Brian M. Boynton, head of the DOJ’s Civil Division, emphasized the importance of pharmacies ensuring that prescriptions for opioids and other controlled substances are medically necessary. “Pharmacies that fill prescriptions for opioids and other controlled substances have an obligation to ensure that those prescriptions are medically necessary,” Boynton said in a statement. “The department is committed to holding accountable pharmacies that have abdicated this responsibility and thereby contributed to the nation’s opioids crisis.”
The settlement is part of ongoing efforts by federal authorities to address the opioid epidemic, which has claimed thousands of lives in the U.S. in recent years. Pharmacies across the nation are under increasing scrutiny as regulators look to curb the misuse of prescription drugs, particularly opioids, which have been a major contributor to the public health crisis.
The agreement brings an end to the lawsuit, but it serves as a reminder of the growing accountability placed on pharmacies in the fight against opioid abuse and the broader challenge of controlling the distribution of addictive substances.
