Under the settlement, Springfield will receive $57,000; Holyoke, $35,000; Longmeadow, $5,000 and South Hadley, $11,000.
BOSTON – The Walgreen Co. will pay $2.8 million – including $108,000 to Springfield and three other local communities – to settle an investigation by the state attorney general.
Attorney General Martha CoakleyAttorney General Martha M. Coakley said her investigation found that Walgreens overcharged the state and 75 cities and towns for prescription drugs provided in accord with the state's workers compensation insurance system.
According to the settlement filed in Suffolk Superior Court in Boston, Springfield will receive $57,000; Holyoke, $35,000; Longmeadow, $5,000 and South Hadley, $11,000.
“Cities and towns are under a great deal of economic stress, and every dollar counts,” Coakley said in a statement.
Walgreens, a national drug store chain based in Deerfield, Ill., billed and received payments from cities, towns and state agencies for filling prescriptions for workers' compensation claims at prices in excess of those allowed by Massachusetts laws, Coakley alleged.
According to the settlement, Walgreens allegedly overcharged Massachusetts cities, towns, and state agencies by approximately $1.4 million since 2002. Under the settlement, Walgreen will re-pay these overcharges, and will also pay an additional $1.4 million to the state.