The feds say they’ve settled a lawsuit against pharmacy chain Rite Aid filed by a whistleblower who claimed the company used gift cards to lure Medicare and Medicaid beneficiaries to switch their prescriptIons in a bid to gain business.

Rite Aid will pay out almost $3 million to settle the allegations, reports the Associated Press, without admitting any wrongdoing in the matter.

The suit filed by a Florida pharmacist claims that between 2008 and 2010, Rite Aid was in violation of the False Claims Act by offering up the gift cards to lure new business to its pharmacies.

Rite Aid, based in Camp Hill, P.A., says it denies the allegations but is glad the matter is resolved without any further litigation.

Rite Aid settles whistleblower case for nearly $3M [Associated Press]

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