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3 pharmacies settle West Virginia generic sales dispute

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By The Associated Press

CHARLESTON, W.Va. - West Virginia officials have reached a nearly $3 million settlement with Kroger, CVS and Walgreens in a dispute involving cost savings from generic prescription drugs sales.

Attorney General Patrick Morrisey made the announcement Tuesday in a news release.

Former Attorney General Darrell McGraw filed the lawsuit against the pharmacies in 2009. The complaint alleges the pharmacies failed to accurately calculate and pass along retail savings from its prescription drug sales. The lawsuit also said that each instance was a violation of the state's Consumer Credit and Protection Act.

The pharmacies deny any wrongdoing.

In addition to the settlement, the companies must implement a compliance program in accordance with the state's Pharmacy Act, which requires pharmacies to pass retail savings from generic prescription drug sales onto consumers.

Earlier this year Morrisey announced a $4.9 million settlement with Rite Aid in a similar dispute.

The settlements have sparked disputes between Morrisey's office and the McGraw-appointed outside lawyers handling the lawsuits. Judges have rejected Morrisey's requests to limit attorneys' fees to 25 percent of the settlement amount.


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