Corporate Compliance

Ohio pharmaceutical company pays $8 million to resolve kickback allegations

Compliance Monitor, April 27, 2011

Cardinal Health Inc. agreed to pay $8 million to resolve claims that it violated the False Claims Act by making payments to induce referral orders for its prescription drugs, in violation of the anti-kickback statute, according to a Department of Justice press release.

A former pharmacy owner, R. Daniel Saleaumua, and a pharmacy consultant, Kevin Rinne, filed the case against the Dublin, OH–based pharmaceutical distributor under the qui tam provision of the False Claims Act. Saleaumua alleged that Cardinal paid him $440,000 in exchange for an agreement that he purchase prescription drugs from Cardinal for his pharmacies. Together, Saleaumua and Rinne will receive $760,000 as their share of the government’s recovery.  

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