CVS Caremark Corp.’ pharmacy division, CVS Pharmacy, has agreed to pay a $17.5 million settlement in connection with claims that the company overbilled the U.S. government and various states.

The suit alleges CVS charged Medicaid programs in Alabama, California, Florida, Indiana, Massachusetts, Minnesota, New Hampshire, Nevada and Rhode Island more than the company was rightfully owed. The amount paid by Medicaid was far greater than what would’ve been obligatory had the claims been submitted directly to a third-party insurer.

The settlement will be divided, with CVS paying the U.S. $8 million and the ten affected states $9.5 million.  The St. Paul, Minnesota CVS pharmacist who acted as a whistleblower will receive a $2.6 million reward.

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