BOSTON, Jan. 31, 2022 /PRNewswire/ -- The United States and several states settled a federal and state False Claims Act case brought by clients of the Whistleblower Law Collaborative LLC, against Cardinal Health Inc., one of the nation's largest wholesalers of pharmaceutical drugs and products.
Under the settlement, Cardinal Health will pay the United States and the states $13.125 million plus interest to resolve allegations that it induced physician practices to purchase specialty pharmaceutical products from it by paying customers remuneration in advance of the practice making any drug purchases. This arrangement violates the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b) because it induces physicians to alter their decision-making. The practices submitted claims for payment to Medicare and Medicaid programs that were tainted by these kickbacks. Cardinal will also enter into a compliance program, called a Corporate Integrity Agreement, with the Department of Health and Human Services Office of Inspector General.
Our clients, concerned by Cardinal's payment of these kickbacks, brought valuable knowledge about the fraud to the attention of the government by filing a qui tam complaint under the False Claims Act in 2019. Together, with our clients, Whistleblower Law Collaborative attorneys worked with government prosecutors at the Department of Justice and the United States Attorney's Office in the District of Massachusetts to help stop to the illegal conduct.
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