The misreporting of drug prices by Dava Pharmaceuticals has led to an $11 million settlement in a whistleblower case under the federal False Claims Act. It appears that the drug prices were misreported to reduce the company's rebate obligations under the Medicaid Drug Rebate program. The whistleblower, whose name was not disclosed, will receive 15% of the settlement.

Source: Washington Post

The misreporting of the drug prices here inflated or increase the amount of money the company got from the federal government through its participation in the Medicaid program. This kind of activity violates the federal False Claims Act, because a supplier to the federal government (here, the drug company) wrongfully reaped profits through deceptive or fraudulent conduct. Under the False Claims Act a a whistleblower can keep 15 – 25% of the monies recovered by the government.

If you are aware of fraud toward the federal government by contractor or supplier, contact Lexington, Kentucky whistleblower and False Claims Act lawyer Robert Abell at 859-254-7076.

 

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