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Date: 08-09-2023
Case Style:
Case Number: :18-cv-00673
Judge: Gregory K. Frizzell
Court: United States District Court for the Northern District of Oklahoma (Tulsa County)
Plaintiff's Attorney: Cory Buland, Janet Goldstein, Jo Lynn Jeter, , Joel Wholgemuth Marianne Smith Hardcastle, Mike Burrage, Robert Vogel; ; Shelley Slade; Tim Eisel, Bill Carmody; Chris Robinson; Halley Josephs; Hannah Waite; Max Staus
Defendant's Attorney: Andrew Lu; Caleb McKee; Fred Robinson; Selina Coleman; Steve Holden for Stephen L. LaFrance Pharmacy, Inc. et al.
Biran Irving; James Buchan; Jeff Gibson; Jessica Bowman; John Eason; Mary Quinn-Cooper;
Matthew Curley for Dalecon, Inc., et al.
Description: Tulsa Oklahoma whistleblower lawyers represented Plaintiffs who sued Defendant on a false claims act violation theory.
This was a qui tam False Claims Act case in which Relator, on behalf of the United States and several states, alleges Defendant Pharmacies obtained overpayment of reimbursements from government funded healthcare programs by reporting their usual and customary (U&C) prices to the public were higher than their actual U&C prices. The instant case involves a drug price-match program implemented by USA Drug which allegedly ran from October 2008 through May 2013. The price-match program allegedly served to lower the U&C prices to rates lower than those reported to the government programs. In September 2012, Defendant Walgreens purchased USA Drug and in May 2013 the USA Drug stores that remained in operation were converted to Walgreens' systems, at which time the price match program was no longer in effect. The Arcadia Valley Defendants' (AVD) involvement in the alleged pricing practice ended when the pharmacies were sold to Walgreens in September 2012.
Relator J. Douglas Strauser filed his qui tam complaint in the United States District Court for the Western District of Oklahoma on May 14, 2013. The case was sealed while the government investigated the allegations. During that time, relator filed his First Amended Complaint. On April 30, 2018, the United States file a Notice of Election to Decline Intervention. Thereafter, the court in the Western District unsealed the case.
Relator J. Douglas Strauser filed his qui tam complaint in the United States District Court for the Western District of Oklahoma on May 14, 2013. The case was sealed while the government investigated the allegations. During that time, relator filed his First Amended Complaint ("FAC"). [Doc. 21]. On April 30, 2018, the United States file a Notice of Election to Decline Intervention. Thereafter, the court in the Western District unsealed the case.
Relator is a licensed pharmacist who owned and operated pharmacies in Missouri from 1976 to 2008. On June 30, 2008, he sold his pharmacy business to an entity under common ownership and control with LaFrance Pharmacy. Relator worked as a pharmacist at one of the pharmacies he sold until June 2013.
LaFrance Holdings was founded by Stephen L. LaFrance, Sr. Between 2008 and the fall of 2012, LaFrance Holdings, along with LaFrance Pharmacy and Stephen L. LaFrance, Jr. and Jason LaFrance, owned and controlled a group of affiliated corporate entities ("the LaFrance affiliates") that, in turn, collectively owned a chain of pharmacies that were operated and controlled as a single enterprise. The LaFrance affiliates shared the brands USA Drug, Select Brand, Super D Drug, May's Drug, Med-X, and Drug Warehouse, and many of their pharmacies were known as USA Drug pharmacies, often with reference to one of the additional brands as well.
By September 17, 2012, LaFrance Pharmacy had consolidated under its ownership most if not all of the LaFrance affiliates, which at the time collectively owned approximately 144 pharmacies in Arkansas, Mississippi, Missouri, New Jersey, Oklahoma, and Tennessee. On September 17, 2012, Walgreens purchased the stock of LaFrance Holdings for $438 million. Walgreens also purchased the assets or stock of certain affiliated entities. Walgreens thereby become the owner of LaFrance Pharmacy and acquired the USA Drug pharmacy business.
Outcome: Settled and dismissed with prejudice.
Plaintiff's Experts:
Defendant's Experts:
Comments: