United States of America v. People’s Rx, Inc., d/b/a The People’s Pharmacy Shoppe

Newark, New Jersey criminal defense lawyer represented the Defendant charged with False Claims Act Allegations Of Billing For Drugs Not Dispensed

Union City Pharmacy Agrees To Resolve False Claims Act Allegations Of Billing For Drugs Not Dispensed

People's Rx, Inc., d/b/a The People's Pharmacy Shoppe ("People's”), a pharmacy located in Union City, New Jersey, agreed to pay $995,420 to resolve allegations that it violated the False Claims Act by knowingly billing a federal health care program for medications that it never dispensed.



According to the contentions of the United States in the settlement agreement:



The United States alleged that, from January 2, 2015, through January 24, 2022, People's caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries. The government contends that inventory records showed that People's did not purchase enough of these medications from wholesalers to fill the prescriptions billed to the federal health care program.



The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the District of New Jersey and the Justice Department's Civil Division, Commercial Litigation Branch, Fraud Section.



The government is represented by Assistant U.S. Attorneys Robert Toll and Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Jennifer Cihon in the Civil Division's Commercial Litigation Branch (Fraud Section).



The government's pursuit of these matters illustrates the government's emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).

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