Posted On: May 26, 2008 by David L. Haron

Recent Qui Tam Settlement Expose Pharmaceutical Fraud

Qui Tam health care settlements occur regularly resulting in substantial recoveries for the governments of the United States and the various individual states from providers of false and fraudulent claims to the Medicare, Medicaid and other government programs.

On May 2, 2008, McKesson Corporation, a national distributor of branded and generic prescription medications, agreed to settle allegations that it violated federal reporting provisions relating to the sale of certain prescription medications regulated by the Drug Enforcement Administration announced United States Attorney Rod J. Rosenstein. Under the agreement between the company and six United States Attorney’s Offices, including the District of Maryland, McKesson has agreed to pay $13,250,000 in civil penalties, $2 million of which relates to conduct allegedly occurring at McKesson’s Landover, Maryland facility. In addition, McKesson has entered an administrative agreement with DEA in which it agrees to implement new policies and procedures to detect and prevent drug diversion beyond those currently required by federal regulation.