Presented by Hodgson Russ, the Whistleblower Blog is written by a team of lawyers experienced in successfully guiding both whistleblowers and companies accused by whistleblowers of wrongdoing through the False Claims Act process.

Pharma Company Settles Whistleblower Drug Treatment Suit

According to the government, Dava violated the False Claims Act by incorrectly treating its version of the drugs cefdinir, clarithromycin, and methotrexate as generic drugs, which lowered the overall percentage rebate payable to Medicaid. In addition, Dava “incorrectly calculate[ed] average manufacturer prices for its versions of the drugs cefdinir, clarithromycin, methotrexate, and rheumatrex.” As a result, the government alleged that Dava underpaid drug rebates to Medicaid.

Of this $11 million, $5.7 represents the federal government’s portion, and over $5 million will be paid to participating states. Additional amounts will be paid to public health services entities. As part of the settlement, the qui tam whistleblower who brought the case will receive 15 percent of the $11 million, according to the government’s press release.

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