Nostrum agrees to $50M settlement with DOJ over allegations of underpaying Medicaid
Missouri-based pharma Nostrum Laboratories and its CEO have agreed to pay a minimum $3.8 million and up to $50 million to settle accusations from the US Department of Justice that the company violated the False Claims Act.
According to the DOJ, Nostrum and its CEO were “knowingly underpaying Medicaid rebates due for Nostrum’s drug Nitrofurantoin Oral Suspension” after hiking up the price of the antibiotic. The settlement could go up to $50 million if certain financial contingencies are met, though the department did not specify the contingencies.
Unlock this article instantly by becoming a free subscriber.
You’ll get access to free articles each month, plus you can customize what newsletters get delivered to your inbox each week, including breaking news.