The Sandoz unit of Novartis has agreed to pay $150 million to settle a False Claims Act case originated by Ven-a-Care of the Florida Keys, a specialty pharmacy in Florida. The lawsuit was filed by a whistleblower, along with the states of Florida and California, alleging that Sandoz intentionally misreported pricing information in a deliberate effort to increase the payments it received from Medicaid. As part of the settlement, the federal government will receive $86.5 million, Florida will receive $15.2 million and $40 million will go to California. The remaining $8.3 million will go to Ven-A-Care, the realtor, which was the Plaintiff filing the whistleblower lawsuit.
This is only the latest settlement stemming from years of Medicaid fraud (Average Wholesale Price) lawsuits against drug manufacturers for the intentional and fraudulent misreporting of their drug prices in order to increase the payments they receive from the sate Medicaid systems. Under federal and state law, Medicaid payments to drug providers are derived using a series of pricing levels that the companies disclose to reporting services, which in turn provide the pricing information to state governments. As part of the joint state-federal Medicaid program, the states pay pharmaceutical providers hundreds of millions of dollars a year. In some of the AWP lawsuits, average wholesale prices have been as much as 6,000 percent higher than the drug’s true cost. The drug companies have been furnishing false prices to the states and that fraud has costs taxpayers huge sums over the years.
AWP lawsuits have been brought by the government and 21 states against nearly every large drug maker for the fraudulent reporting of drug prices to the state Medicaid agencies. Our law firm currently represents the citizens of Alabama, Alaska, Hawaii, Kansas, Louisiana, Mississippi, South Carolina, and Utah, along with the Attorneys General of those states, in lawsuits seeking to recover hundreds of millions of dollars in overpayments as a result of the drug manufacturers’ fraudulent price reporting scheme.
Source: TAF Newsletter
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.