June 3, 2025
A $2.8 million False Claims Act settlement with Walgreens began in 2019 when two brave Waters Kraus Paul & Siegel whistleblower clients came forward with details about a pattern of Medicaid overbilling.
The agreement announced by the U.S. Department of Justice on March 27, 2025, relates to claims that Walgreens inflated prices for generic drugs submitted to Medicaid programs in Massachusetts and Georgia. According to the settlement, Walgreens inflated its “usual and customary price” that it charged Medicaid for certain generic drugs between 2008 and 2023.
The case began when whistleblowers Donna Chambers and Irene Gendel exposed the scheme in a qui tam whistleblower complaint under the federal False Claims Act. The U.S. Department of Justice later intervened.
“Our clients’ courage to come forward with critical inside information about overbilling practices was paramount to securing this settlement,” said firm partner Paul Lawrence. “Their willingness to expose the scheme, despite the potential risks, protected taxpayer dollars and ensured the integrity of Medicaid. We are proud to have represented these two and to have played a role in holding Walgreens accountable.”
What is the False Claims Act
The False Claims Act (FCA) is a powerful tool designed to combat fraud against the U.S. government. It allows individuals, known as “relators” or whistleblowers, to file lawsuits on behalf of the government against those who have submitted false claims for payment. A key feature of the FCA is its “qui tam” provision, which empowers whistleblowers to come forward and individually file claims and receive a percentage of the recovery as a reward. This provision is one of the government’s most valuable tools for uncovering fraud that would otherwise go undetected, safeguarding taxpayer dollars and ensuring government programs are administered fairly.
FCA attorneys at Waters Kraus Paul & Siegel have a national reputation based on their expertise representing whistleblowers in FCA litigation. The firm has obtained record outcomes partnering with the Justice Department in qui tam litigation in venues across the country. The firm has obtained settlements from Walgreens in litigation filed in other states, including a $9.9 million settlement related to California Medicaid overbilling in 2017; a $3.5 million settlement in Wisconsin in 2019; and a $7.9 million settlement in Illinois in 2012.
How Do We Fight Fraud Against the Government?
Seek justice on behalf of taxpayers with the help of our experienced attorneys. Our Dallas, Texas, whistleblower team has battled corporate giants for 20 years, aggressively fighting to hold corporations, individuals, and other entities accountable for fraud committed against the government. If you believe you have a whistleblower case, we can help.
Our Results
Historic settlement for over 1,300 survivors of clergy and adult abuse within the Roman Catholic Archdiocese of Los Angeles, marking a pivotal moment for justice.
A Philadelphia jury awarded a record verdict against ExxonMobil for failing to warn about cancer risks due to benzene in its petroleum products.
Private equity firm and co-defendants agree to pay $25M in Medicaid fraud case alleging mental health services provided by unqualified providers.
That’s the first question everyone asks. The truth is it’s impossible to know. But we can tell you this. Waters Kraus Paul & Siegel has what it takes to fight against big corporate interests and win.
