A major grocery chain operator, Ahold Delhaize USA, has agreed to a $40 million settlement following allegations of submitting inflated prescription drug pricing data to federal health care programs. The settlement, announced by the U.S. Department of Justice, stems from accusations that the company did not report discounted prescription prices as its “usual and customary” rates when billing Medicare Part D, Medicaid, and Tricare. This led to government health care programs overpaying pharmacies for prescription drugs.
The case, brought to light by whistleblower Lawrence LaBenne, a pharmacist at an Ahold Delhaize location in Pennsylvania, highlights the importance of accurate pricing disclosures in taxpayer-funded health care programs. Under the civil settlement, LaBenne will receive over $6 million for reporting the alleged misconduct.
Of the total settlement amount, approximately $32.9 million will go to the federal government, with the remaining funds distributed among participating states. Ahold Delhaize has emphasized that the settlement does not imply an admission of wrongdoing, stating that they have cooperated fully with the government’s review.
The settlement comes in the wake of Ahold Delhaize’s first-quarter fiscal 2026 earnings report, which revealed that U.S. net sales and comparable sales were negatively impacted by pharmacy pricing changes related to the Inflation Reduction Act. The company now expects these changes to reduce U.S. pharmacy sales by around $450 million.
This case is part of a broader trend in the pharmacy industry, with several major retailers and pharmacy chains facing scrutiny over pricing disclosures and reimbursement practices. CVS Health and Walgreens Boots Alliance are among the companies that have been involved in False Claims Act litigation and settlements related to pharmacy reimbursement.
While the specific allegations may vary, these cases often revolve around how pharmacies define and report “usual and customary” prescription prices when billing federal health care programs. This scrutiny underscores the importance of accurate pricing disclosures in maintaining the integrity of taxpayer-funded health care programs.
This article was originally published by TheStreet on Jun 17, 2026, and provides insight into the regulatory challenges facing the pharmacy industry.
