MADISON, Wis. (Legal Newsline) - Wisconsin Attorney General J.B. Van Hollen announced an agreement Tuesday with Kmart Corp. settling allegations that it submitted false claims and false statements throughout its Kmart Pharmacy Centers to the federal government, state governments and territories for payments relating to partial fills of prescriptions.

Under terms of the agreement, which Van Hollen joined with other states, territories and the federal government, Kmart will pay a total of $2.55 million in civil damages and penalties to compensate Medicaid, Medicare and other federal healthcare programs for harm suffered as a result of its conduct.

Wisconsin will receive $34,911.06 in restitution and other recovery.

Kmart allegedly violated the federal False Claims Act by returning to stock and failing to delete or re-adjudicate prescriptions that were billed to Medicaid or other federal health insurance programs that were not picked up by customers form January 2004 to October 2005.

The settlement is based on a qui tam case filed in the United States District Court for the Eastern District of Michigan by a private individual who filed the action under the federal false claims statute.

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