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Attorney General Jason R. Ravnsborg

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Wal-Mart to Pay 2.8 Million for Allegedly Dispensing Partial Prescriptions


PIERRE, S.D. – Attorney General Larry Long announced today that Wal-Mart has agreed to pay $2,866,904.00 to the United States and 49 states to settle allegations under the federal False Claims Act that the company billed the Medicaid Program for partially filled prescriptions. The Arkansas-based company is alleged to have dispensed partial or “short” prescriptions due to insufficient stock, but received full payment from government health insurance programs. The settlement covers the time period from January 1, 1990 to December 31, 2000. The lawsuit, in which the Justice Department has partially intervened, has also reached an agreement in principle with a team of state negotiators from South Carolina, North Carolina, Pennsylvania and Ohio representing the National Association of Medicaid Fraud Control Units. 

In addition to the $2.8 million payment, Wal-Mart has reached an agreement with the Department of Health and Human Services’ Office of Inspector General that the company’s conduct will be monitored by the government under a four-year corporate integrity agreement. 

South Dakota’s settlement money will be returned to the state Medicaid program and the general fund.