Federal Government To Join Lawsuit Against Drug Maker
It has been announced that the Federal government plans to join the lawsuit filed by a whistleblower against the drug making company, Dey LP. The lawsuit relates to allegations that the drug making company defrauded government medical programs by claiming back millions of dollars on medications for which the company had inflated its prices.The drug maker, which is affiliated to Merck KgaA, has denied that it inflated its prices and has denied any form of wrong doing in the case. The lawsuit was brought by Ven-A-Care, based in Florida Keys, and the government intervened in the Boston filed lawsuit.
The complaint being filed by the government accuses the drug maker of defrauding patient medication reimbursement schemes, Medicare and Medicaid, by claiming hundreds of millions of dollars for drugs where the prices were inflated to up to five times the actual sales prices.
However, a senior official with Dey stated: "When virtually an entire industry is sued - as has been the case with the pricing lawsuits that have been filed around the country by dozens of attorneys general - it indicates that the real issue is not the industry's conduct, but rather the government's own reimbursement system."
Topic Added September 25th, 2006
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