CVS Caremark agrees to settle Medicaid fraud claims for $37 million

CHICAGO The investigation began more than five years ago after a suburban Chicago pharmacist alerted authorities.

Attorneys say Rhode Island-based CVS gave Medicaid patients Ranitidine capsules instead of less expensive tablets. The drug is a generic version of the heartburn medication Zantac.

Authorities say the switch is illegal and allowed the company to charge state Medicaid programs more and reap a bigger profit.

Lawyers say CVS admits no wrongdoing in the case.

The settlement was announced Tuesday.

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