Walgreens-backed CityMD settles COVID fraud claims (NASDAQ:WBA)

walgreens (Nasdaq: WBAThe U.S. Department of Justice (DoJ) announced that subsidized urgent care provider CityMD has agreed to pay more than $12 million to resolve allegations that the company falsely claimed government payments related to coronavirus (COVID-19) tests during the pandemic.

Settlement follows An investigation into allegations that New York-based CityMD, as part of a federal program dedicated to COVID-19 testing among the uninsured, submitted false claims seeking payments even for insured individuals.

CityMD, which operates approximately 177 urgent care facilities in New York and New Jersey, submitted these claims or provided third-party laboratories to submit such claims to the program from February 4, 2020, through April 5, 2022, the Department of Justice alleged.

“The alleged misuse of these funds is something we cannot do He will not tolerate. “Today’s settlement ensures that improperly obtained funds are returned to the government,” said U.S. Attorney Philip Selinger.

CityMD joined the Walgreens (WBA) portfolio in early 2023 after former parent Summit Health agreed to acquire WBA-backed VillageMD for approximately $8.9 billion with investments from Cigna's (New York Stock Exchange: CI) Pharmacy Benefits Manager, Evernorth,