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Schwarz Pharma Pays $22 Million to Settle False Claims Allegations Concerning Reimbursement for Unapproved Drugs
Date:4/29/2010

mplete information to the government about the drugs they manufacture," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "There will be consequences for companies who provide false information to obtain taxpayer dollars for their drugs."

The settlement resolves allegations against Schwarz in two separate multi-defendant whistleblower actions captioned United States ex rel. Constance Conrad v. Schwarz Pharma, et al., No. 02-11738-NG (D. Mass.), and United States ex rel. James Conrad v. Schwarz Pharma et al., Civil No. 08-cv-428 (S.D. Tex.). The federal share of the settlement is $12,243,836 and the state Medicaid share is $9,756,164. The lawsuits were brought under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private parties with knowledge of fraud to sue on behalf of the United States and share in any recovery. Under the settlement, the two whistleblowers will receive a total of $1,836,575 from the federal share and additional amounts from the state share.

"This False Claims Act agreement shows that the Department of Justice will not allow manufacturers to evade the drug approval process and expect the government to pay for less than effective drugs," said Carmen Ortiz, U.S. Attorney for the District of Massachusetts.

"We will continue to pursue companies that submit false information to obtain payment for unapproved drugs that are ineffective or on the market illegally," said '/>"/>

SOURCE U.S. Department of Justice
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