For Immediate Release - January 11, 2010

Attorney General Martha Coakley Announces Payment to Commonwealth by Shaws Supermarket, Inc.

Company will also repay towns and cities for overcharges on workers compensation drug claims

BOSTON - Today, Attorney General Martha Coakley's Office entered into an agreement with grocery store chain Shaws Supermarket, Inc., after an investigation unveiled the company was overcharging public entities for various prescription drugs under the workers compensation insurance system. Under the terms of the Assurance of Discontinuance, filed today in Suffolk Superior Court, Shaws will make a payment to the Commonwealth and to certain cities and towns in Massachusetts totaling $103,000.

"These are tough economic times for towns and cities, and our Office will continue to make sure they are being treated fairly in the marketplace," said Attorney General Martha Coakley. "Our concern here was to ensure that Massachusetts cities and towns receive prompt refunds for any overcharges, and that in the future public entities are not overcharged for prescription drug purchases. We appreciate that Shaws cooperated with us to reach these goals."

Under the terms of today's agreement, filed today in Suffolk Superior Court, towns, cities, and other public entities were overcharged by approximately $40,000, and will receive refunds of the overcharges. Additionally, Shaws will pay $63,000 to the Commonwealth. The settlement is part of an ongoing investigation by the Attorney General's Insurance and Financial Services Division of prescription overcharges by pharmacies to public entities under the workers compensation insurance system.

This matter was handled by Assistant Attorneys General Peter Leight and Glenn Kaplan, and by mathematician Burt Feinberg and economist Bryan Lincoln of Attorney General Coakley's Insurance and Financial Services Division.

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