Pharma Distributor Pays $13.1M to Settle FCA Allegations

A pair of handcuffs and pills on top of a newspaper.

Cardinal Health became the target of whistleblowers who alleged that the Ohio-based pharmaceutical distributor recruited new customers by offering and paying cash bonuses to physicians to purchase drugs from them instead of its competitors for use on Medicare and Medicaid patients in violation of the Anti-Kickback Statute and False Claims Act. As a result, the…

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Government cracking down on drug company ties to charities

A dollar sign sitting on top of many pills.

Actelion Pharmaceuticals, a San Francisco-based biopharmaceutical company, recently agreed to pay $360 million to resolve allegations it provided kickbacks to a charitable organization through contributions it made, and that the charity turned around and used those contributions to pay the copays of patients using Actelion’s drugs. Drug makers are not permitted to make Medicare patient…

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