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Big Pharma Settles False Claims for $124 Million

October 22, 2009

According to DoJ, Mylan Pharmaceuticals, UDL Laboratories, AstraZeneca Pharmaceuticals and Ortho McNeil Pharmaceutical will pay $124 million to settle False Claims Act allegations that they failied to pay rebates to state Medicaid programs. The settled allegations regarding practices by the companies of misclassifying “innovator” drugs as “non-innovator” drugs, with the result that the companies underpaid rebates due under the Medicaid Prescription Drug Rebate Program.

The case was brought by a whistleblower under the qui tam provisions of the federal and various state false claims acts. The whistleblower will recieve more than $10 million for assisting the government in the recovery.

To report Medicaid fraud, contact Frohsin & Barger.

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