Massachusetts to receive $2.1 million from Rite Aid Corp. to settle investigation by attorney general

An investigation found that Rite Aid was allegedly overcharging for prescription drugs under the state's worker's compensation system.

File photo / Associated PressA woman leaves a Rite Aid store in Philadelphia one day last month.

BOSTON - Rite Aid Corp. will pay about $2.1 million to the state and about 100 cities and towns including Chicopee, Holyoke and Springfield, Attorney General Martha M. Coakley said on Wednesday.

The company, based in Camp Hill, Pa., agreed to settle an investigation, which found it had been charging too much for prescription drugs under the worker's compensation system, according to Coakley.

“This case is about fairness to cities and towns, especially during these tough economic times,” said Coakley.

Coakley settled a similar case last week against the Walgreen Co., also a national drug store chain.

Martha M. Coakley

According to the settlement, filed in Suffolk Superior Court in Boston, Rite-Aid will pay $1 million to cities and towns that allegedly were overcharged since 2002 and the company will pay another $1.05 million to the state's general fund, said a spokeswoman for Coakley.

Chicopee will receive $14,000; Holyoke, $57,000 and Springfield, $25,000, according to the attorney general.

Coakley's office has obtained similar settlements with CVS, Shaws Supermarkets, and Stop & Shop, bringing the total amount returned to cities and towns under worker’s compensation prescription overcharges settlements to $7.9 million.