Dava Pharmaceuticals Whistleblower Case Settles for $11 Million

Share Article

Over the past two years, Nolan & Auerbach, P.A. has successfully concluded nearly a dozen multi-million dollar qui tam actions, resulting in over $1.3 billion, for the United States Treasury. Today, Nolan & Auerbach, P.A. announces the $11 million healthcare fraud settlement of a whistleblower’s False Claims Act case against Dava Pharmaceuticals, Inc.

Over the past two years, Nolan & Auerbach, P.A. has successfully concluded nearly a dozen multi-million dollar qui tam actions, resulting in over $1.3 billion, for the United States Treasury. Today, Nolan & Auerbach, P.A. announces the $11 million healthcare fraud settlement of a whistleblower’s False Claims Act case against Dava Pharmaceuticals, Inc.

Pharmaceutical labelers that want their products available to Medicaid beneficiaries under the Medicaid program must enter into a Drug Rebate Agreement. Pursuant to the Medicaid Drug Rebate program, the rebate owed to the States under the Medicaid program is less for non-innovator (generic) drugs.

The settlement resolves allegations that Dava Pharmaceuticals falsely claimed the lower rebate amount by incorrectly classifying its version of the drugs Cefdinir, Clarithromycin, and Methotrexate as “non-innovator” drugs, rather than “innovator” (single source or innovator multiple source) drugs. According to court documents, Dava used those incorrect methodologies in calculating average manufacturer prices for these drugs, thus permitting Dava to underpay its rebate obligations to the Medicaid Drug Rebate program, and to overcharge certain entities that participated in the Public Health Services Drug Pricing Program.

Federal and State False Claims Acts allow private citizens with detailed knowledge of fraud to bring an action on behalf of the governments and to assist in the recovery of the governments’ stolen dollars. These statutes allow the government to recover three times the amount it was defrauded, in addition to civil penalties of $5,500 to $11,000 per false claim. Successful whistleblowers can receive between 15 and 30 percent of the governments’ recovery.

The federal share of this Medicare fraud settlement is $5,731,098, and the state share is $5,083,345. Under the settlement, the whistleblower will receive fifteen percent of the federal share and additional amounts from the state share.

This case is United States ex rel. Jim Conrad v. Dava Pharmaceuticals, Inc., No. WDQ 10-408 (D. Md.).

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Marcella Auerbach

Ken Nolan
Visit website