Drugmaker Schwarz Pharma will pay $22 million to settle federal fraud allegations that it claimed reimbursements it was not eligible to collect. The government alleged that Schwarz misrepresented the regulatory status of the drugs Deponit and Hyoscyamine Sulfate ER and failed to advise that the drugs were not covered under federal health care programs.
Drugmaker Schwarz Pharma to Settle Federal Fraud Suit for $22 Million
BOSTON — Federal prosecutors say a pharmaceutical company has agreed to pay $22 million to settle allegations that it claimed federal reimbursement for medications that it was not eligible to collect.
Prosecutors announced that Schwarz Pharma Inc., now a subsidiary UCB SA of Belgium, allegedly submitted false reports to the U.S. government related to the drugs Deponit and Hyoscyamine Sulfate ER.
The government alleges that Schwarz misrepresented the regulatory status of both drugs and failed to advise that the drugs did not qualify for coverage under federal health care programs.
Neither medication ever received full regulatory approval for safety and effectiveness.
UCB did not immediately respond to an e-mail message seeking comment.
SOURCE The Associated Press/The Huffington Post
Couldn't agree more
