$54 Million Settlement reached in Whistleblower Lawsuit with 2 drug manufacturers

Date Filed:

Tuesday, October 28, 2008

Settlement Amount:

$54,000,000

A settlement has been reached in a whistleblower class action lawsuit brought against AstraZeneca LP and Cephalon Inc who are accused of knowingly underpaing rebates owed under the Medicaid Drug Rebate Program

There are 2 separate settlements with AstraZeneca and Cephalon arising from this case. They are $46.5 Million and $7.5 Million, respectively. AstraZeneca will pay the United States roughly $26.7 million, plus interest to the United States. The remainder of those settlements will be paid to the states participating in the settlement. The whistleblower's share of the government's recovery has not been determined.

The whistleblower lawsuit was filed in October 2008. The complaint alleged that the drug manufacturers underreported Average Manufacturer Prices (AMP) for a number of their drugs by improperly reducing the reported AMPs for service fees they paid to wholesalers. As a result, the government contends that the companies underpaid quarterly rebates owed to the states and caused the United States to be overcharged for its payments to the states for the Medicaid program.

This qui tam lawsuit has not concluded and makes similar allegations against other pharmacuetical manufacturers. The litigation will continue.

Pharmaceutical Fraud

If you have a similar case please fill out the form below or email mail@whistleblowerinstitute.com or call: 619-452–1218

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If you or someone you know experienced a similar situation or any other wrongdoing within a corporation you should contact mail@whistleblowerinstitute.com or call: 619-452–1218

Top Whistleblower Rewards

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