Kmart Corp. has agreed to pay $32.3 million to the United States to settle allegations that in-store pharmacies overcharged several federal health care programs, the U.S. Department of Justice has announced.

The settlement agreement is part of a larger $59 million settlement that includes a resolution of state Medicaid and insurance claims against Kmart, the DOJ said.

According to the Justice Department, Kmart, a wholly owned subsidiary of Hoffman Estates, Illinois-based Sears Holdings Corp., allegedly violated the False Claims Act by offering discounted generic drug prices to cash-paying customers, but didn't disclose those cheaper prices when reporting the drugs' usual and customary prices to Medicare Part D, Medicaid and Tricare, which is the health program for uniformed service members and their families.

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Kristen Rasmussen

Kristen Rasmussen is an Atlanta-based reporter who covers corporate law departments and in-house attorneys.