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Violation Tracker Individual Record

Company: Rite Aid Corporation
Current Parent Company: Rite Aid
Penalty: $101,000,000
Year: 2024
Date: July 10, 2024
Offense Group: government-contracting-related offenses
Primary Offense: False Claims Act and related
Mega-Scandal: Healthcare Billing Abuses
Violation Description: Rite Aid Corporation and its pharmacy benefit management subsidiaries Elixir Insurance Company, RX Options LLC and RX Solutions LLC agreed to resolve allegations that they violated the False Claims Act (FCA) by failing to accurately report drug rebates to the Medicare Program. As part of the settlement, Elixir Insurance and Rite Aid agreed to pay the United States $101 million, and RX Options and RX Solutions will grant the United States an allowed, unsubordinated, general unsecured claim for a total of $20 million in Rite Aid's bankruptcy case pending in the District of New Jersey.
Level of Government: federal
Action Type: agency action
Agency: Justice Department Civil Division
Civil or Criminal Case: civil
HQ Country of Current Parent: USA
HQ State of Current Parent: Pennsylvania
Ownership Structure of Current Parent: publicly traded
Major Industry of Current Parent: retailing
Specific Industry of Current Parent: retail-pharmacies
Source of Data: (click here)
Archived Source: (click here)
Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.