Federal prosecutors say Walgreens has paid nearly $10 million to settle claims that it sought reimbursement from California's Medi-Cal program without proper documentation.
The U.S. Attorney's Office in Sacramento said Thursday that the state program pays for specific drugs used to treat certain illnesses for millions of Californians with low incomes and disabilities.
It says Walgreens failed to get the state's permission before it billed Medi-Cal for non-approved uses, but falsely said it had complied.
The settlement grew from two whistleblower lawsuits. The former pharmacist and the former pharmacy technician who reported the problem will get about $2.3 million of the settlement.
The Illinois-based company says it is not admitting liability and settled to avoid the cost and uncertainty of a legal battle.
Walgreens operates about 630 stores in California.