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Eon Labs Inc. Charged Government for Less Than Effective Drug

February 25, 2010

Nitroglycerin SR is no longer eligible for reimbursements by the government, and Eon Labs will pay a hefty price for attempting to charge the Medicare program for the ineffective drug. The Food and Drug Administration (FDA) filed notice to withdraw the drug for lack of evidence of effectiveness. According to the DOJ, “this is the first False Claims Act agreement with a drug company that sought to charge the government for less than effective drugs.” Eon filed false quarterly reports and Medicaid claims on the drug Nitroglycerin SR after it was deemed ineffective by the FDA. In order to resolve the False Claims allegations, Eon will pay $3.5 million to the United States.

To report violations of the False Claims Act, contact Frohsin & Barger.

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