KV Pharmaceutical to Pay $17M to Settle False Claim Allegations
St. Louis-based KV Pharmaceutical Company has agreed to pay $17 million to resolve false claims charges, according to a news release from the Department of Justice.
KV was the parent company of the now-defunct Ethex Corporation, which allegedly submitted false quarterly reports related to its drugs Nitroglycerin ER and Hyoscyamine ER. When reviewing the drugs in the late 1990s, the FDA made determinations that made the drugs ineligible for reimbursement by Medicare and Medicaid.
The government claims that Ethex misrepresented the status of these drugs and failed to advise CMS that they didn't qualify for coverage, which resulted in the submission of false claims.
Related Articles on Pharmaceutical Fraud:
Pfizer Nears Settlement Over Alleged BriberyGlaxoSmithKline Settles Case Over Drug Pricing, Marketing With $3B
Pfizer Resolves False Claims Allegations With $14.5M Settlement
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