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Eon Labs Pays U.S. $3.5 Million to Settle Allegations of Submitting False Claims to Medicaid
Date:2/22/2010

Sandoz Subsidiary Allegedly Submitted Claims for Drug Determined to be Ineligible by FDA

WASHINGTON, Feb. 22 /PRNewswire-USNewswire/ -- Eon Labs Inc. has agreed to pay the United States $3.5 million to resolve False Claims Act allegations relating to the company's drug Nitroglycerin Sustained Release (SR) capsules, the Justice Department announced today. Eon Labs is a subsidiary of Sando  Inc., which is in turn a subsidiary of Novartis AG.

In April 1999, the Food & Drug Administration (FDA) determined that Nitroglycerin SR lacked substantial evidence of effectiveness and published a notice proposing to withdraw approval of the product. The government contends that, after the FDA notice, Nitroglycerin SR no longer was legally eligible for reimbursement by government health care programs such as Medicaid.


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SOURCE U.S. Department of Justice
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