BOSTON –Walmart Inc. and Target Corp. have agreed to pay $232,000 to cities and towns across Massachusetts to settle claims that they allegedly overcharged public agencies for prescription drugs through the workers’ compensation insurance system.
Attorney General Martha Coakley announced the agreements. Under terms of the settlements, the state and its cities and towns will receive $207,000 from Walmart and $25,000 from Target. The payments include double damages for violations of the state’s False Claims Act, as well as restitution for alleged overcharges. The terms also require the chains to put procedures in place to guard against future overcharges.
Cities and towns affected by the allegations against Walmart and Target include Amherst, Boston, Concord, Everett, Fall River, Framingham, Hingham, Lowell, Plymouth, Springfield and Worcester.
The settlements with Walmart and Target followed actions by Coakley’s office against major pharmacy chains CVS Caremark Corp., Rite-Aid, and Walgreens, which she alleged also overcharged towns and cities for drugs under the workers’ compensation system.
Combining the major pharmacy-chain cases and the settlements with lower-volume alternative retailers, Coakley’s office’s investigations have recovered more than $8 million. •