PHARMACEUTICAL AND DEVICE
DA TE
ENTITY
FCA ALLEGATIONS
AMOUNT
Mail-order diabetic testing supplier and its parent agreed to pay $160 million to resolve intervened FCA allegations that they made or caused false claims to be submitted to Medicare that were: (1) tainted by kickbacks to Medicare beneficiaries in the form of free glucometers or waived co-pays; (2) false because the patient was not eligible to receive a new glucometer; or (3) false because the patient was deceased. Arriva’s two founders previously paid $1 million to resolve allegations that they participated in the scheme. 44 DME and home respiratory services provider agreed to pay more than $3.3 million to resolve FCA allegations that it billed Medicare and Medicaid for non-invasive ventilator services that were not medically necessary or reasonable. 45 Pharmaceutical manufacturer agreed to pay more than $213 million to resolve FCA allegations related to price fixing for certain generic drugs. The government alleged that Taro and two other pharmaceutical manufacturers, Sandoz and Apotex, paid and received compensation prohibited by the AKS in connection with agreements on price, supply and allocation of customers for certain generic drugs, resulting in higher drug prices for federal healthcare programs and beneficiaries. As part of the resolution, the company entered into a five-year CIA with HHS-OIG. Taro entered into a deferred prosecution agreement with DOJ’s Antitrust division in 2020 for related criminal charges and paid a $205.6 million criminal penalty. 46 Pharmaceutical manufacturer agreed to pay $185 million to resolve FCA allegations related to price fixing for certain generic drugs. The government alleged that Sandoz and two other pharmaceutical manufacturers, Taro and Apotex, paid and received compensation prohibited by the AKS in connection with agreements on price, supply and allocation of customers for certain generic drugs, resulting in higher drug prices for federal healthcare programs and beneficiaries. As part of the resolution, the company entered into a five-year CIA with HHS- OIG. Sandoz entered into a deferred prosecution agreement with DOJ’s Antitrust division in 2020 for related criminal charges and paid an additional $195 million criminal penalty. 47
Arriva Medical, LLC; Alere Inc.
8/2/2021
$160 million
SuperCare Health, Inc.
8/25/2021
$3.315 million
Taro Pharmaceuticals USA, Inc.
10/1/2021
$213.2 million
Sandoz Inc.
$185 million
10/1/2021
44 https://www.justice.gov/usao-mdtn/pr/mail-order-diabetic-testing-supplier-and-its-parent-company-agree-pay-160-million. 45 https://www.justice.gov/usao-cdca/pr/downey-company-provides-home-respiratory-services-agrees-pay-over-33-million-resolve. 46 https://www.justice.gov/opa/pr/pharmaceutical-companies-pay-over-400-million-resolve-alleged-false-claims-act-liability. 47 https://www.justice.gov/opa/pr/pharmaceutical-companies-pay-over-400-million-resolve-alleged-false-claims-act-liability.
NOTABLE SETTLEMENTS BASS, BERRY & SIMS | 53
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