Grocery chain pays massive fine, accused of inflated price reporting

Ahold Delhaize USA has agreed to pay a $40 million settlement after allegations surfaced regarding inflated prescription drug pricing data submitted to federal health care programs. The U.S. Department of Justice stated that the supermarket chain operator did not report discounted prescription prices as its “usual and customary” rates when billing Medicare Part D, Medicaid, and Tricare. This led to higher reimbursements for pharmacies than they should have received, resulting in the multimillion-dollar settlement.

The settlement, which does not involve consumer pricing at grocery stores, highlights the importance of accurate prescription pricing disclosures in taxpayer-funded health care spending. A whistleblower, Lawrence LaBenne, a pharmacist at an Ahold Delhaize location in Pennsylvania, initially brought forward the allegations. As part of the civil settlement agreement, LaBenne will receive over $6 million for reporting the conduct.

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 include an admission of wrongdoing, stating that they have fully cooperated with the government and have not admitted any fault in the matter.

The settlement follows the release of Ahold Delhaize’s first-quarter fiscal 2026 earnings results, where the company reported that U.S. net sales and comparable sales were negatively impacted by pharmacy pricing changes. The company expects these changes to reduce U.S. pharmacy sales by approximately $450 million.

The allegations against Ahold Delhaize are part of a larger focus on the pharmacy industry regarding how discounted prescription prices are reported to federal health care programs. Other major retailers and pharmacy chains, such as CVS Health and Walgreens Boots Alliance, have faced similar investigations or lawsuits related to pharmacy reimbursement and billing compliance issues.

While the specifics of each case may vary, the central issue often revolves around how “usual and customary” prescription prices are defined and reported when pharmacies bill federal health care programs. This settlement serves as a reminder of the importance of accurate pricing disclosures in the healthcare industry.