UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF MICHIGAN

SOUTHERN DIVISION

UNITED STATES OF AMERICA, 

ex rel. CASSIE BASS, 

and STATE OF MICHIGAN, Case No. 2:08cv13827

Hon. John Corbett O’Meara

Plaintiffs, United States District Judge

v.

WALGREEN CO., d/b/a WALGREENS FILED IN CAMERA

PHARMACY, a foreign corporation, AND UNDER SEAL

Defendant.

 /

UNITED STATES’ NOTICE OF INTERVENTION AND FEDERAL 

SETTLEMENT AND REQUEST FOR PARTIAL DISMISSAL

Pursuant to the False Claims Act, 31 U.S.C. § 3730(b)(2) and (4), the United States

hereby notifies the Court of its decision to intervene in the above-captioned case. The United

States also hereby notifies the Court that the United States, Walgreen Co. (“Walgreens”), and

Relator Cassie Bass ("relator") have reached a settlement of the claims under the federal False

Claims Act, 31 U.S.C. § 3929, et seq., in the above-captioned case and that the federal claims

against Walgreens should be dismissed pursuant the terms of the settlement agreement between

the parties.

The relator, through her counsel, consents to the dismissal of all federal claims against

Walgreens as to the relator with prejudice. The dismissal as to the United States is limited to all

civil or monetary claims the United States has under the False Claims Act, 31 U.S.C.

§§3729-3733; the Civil Monetary Penalties Law, 42 U.S.C. § 1320a-7a; the Program Fraud Civil

Remedies Act, 31 U.S.C. §§3801-3812; or the common law theories of payment by mistake,

unjust enrichment, and fraud for the following conduct: Walgreens' allegedly offering and/or

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providing improper inducements, in the form of gift cards, gift checks, and similar promotions,

to the beneficiaries of the government health plans in order to influence their decision to transfer

prescriptions to Walgreens pharmacies between January 1, 2005 and June 11, 2010. The

dismissal of the United States is without prejudice as to all other claims. 

A separate agreement between Walgreens and the State of Michigan concerning the

allegations under the Michigan False Claims Act statute is expected to be reached in the next few

weeks. Counsel for the State of Michigan has indicated that Michigan has no objection to the

unsealing of the above-captioned case at this time and will notify the Court upon settlement of

the Michigan False Claims Act claims.

Accordingly, the United States requests that the Complaint filed in this action, this

Notice, and the attached proposed Order be unsealed. The United States requests that all other

papers on file in this action remain under seal because in discussing the content and extent of the

United States' investigation, such papers are provided by law to the Court alone for the sole

purpose of evaluating whether the seal and time for making an election to intervene should be

extended.

The relator, through counsel, consents to the request for dismissal of all claims under the

federal False Claims Act, 31 U.S.C. § 3729, et seq., against Walgreens in this action with

prejudice as to the relator and the request for the lifting of the seal in this case but requests that

the Court retain jurisdiction to enforce the terms of the settlement agreement between the parties. 

A proposed Order accompanies this Notice.

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Respectfully submitted,

STUART F. DELERY 

Acting Assistant Attorney General

BARBARA L. McQUADE

United States Attorney

Eastern District of Michigan

s/Julia A. Caroff 

JULIA A. CAROFF

Assistant US Attorney

211 W. Fort Street, Suite 2001

Detroit, MI 48226

Phone: (313) 226-9772

E-mail: Julia.Caroff@usdoj.gov

Penna. Lic. No. 37949

s/Allie Pang w/consent 

JOYCE R. BRANDA

ALAN E. KLEINBURD

ALLIE PANG

Attorneys, Civil Division 

U.S. Department of Justice 

P.O. Box 261, Ben Franklin Station 

Washington, D.C. 20044

Phone: (202) 514-6846 

E-mail: Allie.Pang@usdoj.gov

Date: April 12, 2012

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CERTIFICATION OF SERVICE

I hereby certify that I have served: (1) relator’s counsel, Patricia A. Stamler, Esq., Hertz

Schram, PC, 1760 S. Telegraph Road, Suite 300, Bloomfield Hills, MI 48302; and (2)

Elizabeth Valentine, Assistant Attorney General, State of Michigan, Health Care Fraud

Division, 2860 Eyde Parkway, East Lansing, MI 48823 with copies of this United States’

Notice of Intervention and Federal Settlement and Request for Partial Dismissal and Proposed

Order, by first class mail, postage prepaid, on this 12th day of April, 2012. 

s/Julia A. Caroff 

JULIA A. CAROFF

Assistant U.S. Attorney 

211 W. Fort Street, Suite 2001

Detroit, Michigan 48226

Phone: (313) 226-9772

E-mail: Julia.Caroff@usdoj.gov

Penna. Bar No. 37949

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