Walgreens -backed CityMD will pay $12.04 million to settle Covid fraud allegations brought by the Department of Justice, the department announced on Friday. Stephen Kitzinger, a CityMD patient, initially alleged the fraud in 2020. CityMD cooperated with the government's investigation and hired a third-party firm to help the government determine how much was lost in connection as a result of the alleged fraud, according to the DOJ. CityMD said it denies the allegations but has decided to settle in order to to avoid the costs of dragged-out litigation. "The recent settlement is neither a finding of liability nor an admission of wrongdoing, and CityMD denies the allegations.

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Persons: Philip R, Sellinger, Stephen Kitzinger, Kitzinger, CityMD Organizations: Walgreens, Department of Justice, Attorney's, District of, U.S, DOJ, CNBC Locations: Manhattan , New York City, U.S, New York, New Jersey, District of New Jersey, COVID