Food City To Pay Out Large Settlement

Food City is getting ready to pay out a large sum of money. 15 months ago, in September 2023, k-V-A-T Food Stores, who does business as Food City, agree to pay the state of Tennessee $44.5 million for “opiod-related misconduct”. Now, Food City has settled a similar case with the states of with the US and the states of Virginia and Kentucky. The settlement call for Food City to pay the US Government nearly $8.5 million and nearly $80,000 to the states of Virginia and Kentucky “for claims paid to Food city by state Medicaid programs”.

The US Government contends that between 2011 and 2018, ” Food City dispensed opioids and other controlled substances that were medically unnecessary, lacked a legitimate medical purpose or medically accepted indication, and/or were not dispensed pursuant to valid prescriptions”.

The government says that this resulted in Food City submitting false claims to federal healthcare programs. While settling the case, Food city has always questioned the validity of the allegations against them.