The Department of Justice on Tuesday announced it has intervened in a whistleblower lawsuit against Mallinckrodt over allegations the drug maker knowingly underpaid Medicaid rebates it owed due to significant price increases to its drug Acthar.
The case, United States ex rel. Landolt v. Mallinckrodt Pharmaceuticals, was filed in the U.S. District Court for the District of Massachusetts under the whistleblower provisions of the False Claims Act (FCA), which allow private parties to sue on behalf of the government for the submission of false claims for government funds and to receive a share of any recovery. The FCA also permits the government to intervene in such lawsuits, as it has done in this case.
