Nostrum Labs, CEO to pay up to $50M in DOJ false claims case
By 
Kyle Brasseur2023-10-31T18:18:00
Pharmaceuticals firm Nostrum Laboratories and its founder and chief executive officer could pay up to $50 million as part of a settlement with the Department of Justice (DOJ) addressing alleged violations of the False Claims Act by underpaying Medicaid rebates.
Nostrum and CEO Nirmal Mulye agreed to pay at least $3.8 million, with the remainder of the settlement total to be determined based on their respective financial conditions, the DOJ announced in a press release Monday. Portions of the remaining money would be split among Medicaid-participating states as part of separate settlements, according to the agency’s settlement agreement.
The total would not exceed the $50 million figure.
Related articles
-
News BriefTeva Pharma to pay $450M to settle kickback, price-fixing allegations
Generic drug giant Teva Pharmaceuticals has agreed to pay $450 million to settle two cases brought by the Department of Justice (DOJ), including one alleging that co-pays it made on behalf of Medicare patients constituted illegal kickbacks, and a second action for alleged generic drug price fixing.
-
News BriefSilver Lake Hospital to pay $19M over Medicare false claims
New Jersey-based Silver Lake Hospital agreed to pay more than $18.6 million as part of a settlement with the Department of Justice addressing allegations of false claims submitted to Medicare for inpatient cost outlier payments.
-
News BriefCardiac Imaging, CEO to pay $85M in DOJ false claims case
Cardiac Imaging and its chief executive agreed to pay a total of more than $85 million to settle charges levied by the Department of Justice addressing alleged violations of the False Claims Act regarding unlawful kickbacks.
More from Regulatory Enforcement
-
ArticleFlorida seafood exec faces 10 years for crab claw price fixing
A Florida seafood company executive has pleaded guilty to conspiring with competitors to fix the prices he paid to local fishers, an effort that impacted more than $8 million in wholesale fish and cut the pay of hundreds of fishers, the Department of Justice said.
-
ArticleFormer U.S. clothing business CEO faces 25 years for bribery in Honduras
The former CEO of a Georgia clothing business faces 25 years in prison for bribing Honduran officials to win $10 million in uniform contracts in Honduras, after being caught up in a Department of Justice Anticorruption Task Force.
-
News BriefDOJ sues Uber over alleged discrimination against disabled riders
The DOJ sued Uber Thursday, alleging it violated the Americans with Disabilities Act (ADA) by denying people with disabilities equal access to its services.