Corporate Compliance

Schwarz Pharma pays $22 million to settle false claims allegations

Compliance Monitor, May 5, 2010

Schwarz Pharma Inc. agreed to pay the United States $22 million to resolve allegations that it did not inform CMS that two products did not qualify for coverage under federal healthcare programs, according to a Department of Justice press release.
The FDA claimed the drugs in question, Deponit, a nitroglycerin skin patch used to prevent angina, and Hyoscyamine Sulfate ER, an antispasmodic medication used to treat various stomach, intestinal, and urinary tract muscle contractions, were ineligible for reimbursement from government healthcare programs.

Two whistleblowers filed the case under the qui tam provisions of the False Claims Act. The pair will receive more than $1.8 million from the recovery.

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