Walgreens backed CityMD, will pay $12.04 million to settle Covid fraud allegations brought by the Department of Justice, the department announced on Friday.

From February 2020 to April 2022, CityMD, which operates over 100 walk-in urgent care practices in New York and New Jersey, allegedly obtained fraudulent government reimbursements for Covid tests by submitting false claims to a Covid program specifically designated for uninsured patients, even when their patients had health insurance.

The U.S. Attorney’s Office for the District of New Jersey brought the allegations under the False Claims Act, a law that incentivizes whistleblowers to file lawsuits related to potential fraud by providing them a portion of the government’s winnings in successful cases.