The Justice Department says Kmart has agreed to pay 32.3 million dollars to settle allegations its pharmacies caused federal health programs to overpay for prescription drugs by not telling the government about discounted prices.
Kmart, part of Sears Holdings Corporation, was sued in 2008 by former company pharmacist James Garbe, who worked in Defiance. The whistleblower lawsuit alleged Kmart offered discounted prices to customers who paid in cash through club programs but failed to report those discounts to federal health programs such as Medicare Part D and Medicaid. The agreement is a part of a 59 million dollar settlement that includes a resolution of state Medicaid and insurance claims against Kmart. Garbe litigated the case and will receive 9.3 million dollars.