Pharmaceutical Company Will Pay $280M to Settle False Claims Allegations

Dey, a pharmaceutical manufacturer based in Basking Ridge, N.J., has agreed to pay $280 million to the federal government to settle allegations it violated the False Claims Act, according to a Department of Justice news release.

The federal government claims Dey reported false and inflated prices for several pharmaceutical products, including albuterol sulfate, albuterol MDI, cromolyn sodium and ipratropium bromide. The pharmaceutical manufacturer allegedly reported inflated prices for its products to market, promote and sell the drugs to existing and potential healthcare providers and pharmacists who are reimbursed by the government.

Because payment from the Medicare and Medicaid programs was based on the false inflated prices, the government alleged that Dey caused false and fraudulent claims to be submitted to federal health care programs and, as a result, the government paid millions of claims for greater amounts than Dey was actually entitled to.

Read the news release about Dey's settlement.

Read other coverage about Dey:

- 20 Largest False Claims Cases of 2010

- Kentucky Prevails in $3.5M Settlement With Pharmaceutical Company Dey

- New Jersey Pharmaceutical Company Settles Medicaid Fraud Allegations for $2M

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