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BALTIMORE, Md. (WUSA9) -- Maryland came to a settlement agreement Thursday with Rite Aid of Maryland, Inc., resolving allegations that Rite Aid kept the money and the prescriptions that were "undeliverable."

Attorney General Douglas F. Gansler made the announcement and stated the pharmaceutical retailer will pay $20,000 to the Maryland Medicaid Program and a portion of the money will go to the federal government.

The Rite Aid of Maryland mailed prescriptions to patients without checking their mailing addresses between May 2010 and October 2011.

Attorney General Gansler said many of the prescriptions were not delivered, however the payments were not refunded to Maryland Medicaid Program.

"Whether these actions were intentional or just sloppy, the patients who need the treatments and the taxpayers deserve better," Attorney General Gansler said.

The funds will be used for Maryland patients and send the message that operations like this are not acceptable.

AG Gansler Recovers $20,000 in Settlement with Rite Aid of MarylandRetailer kept drugs and Medicaid funds after prescriptions were returned.

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