Firm Settles Whistleblower Suit Against Medco for $9.5 Million
Second Major Settlement Against a Pharmacy Benefits Manager Under False Claims Act
Oct 24, 2006
WASHINGTON, D.C. - Robins, Kaplan, Miller & Ciresi L.L.P. announces that Medco Health Solutions Inc., has agreed to pay $9.5 million to a whistleblower to resolve claims under the federal False Claims Act brought against the pharmacy benefits manager (PBM) in the Eastern District of Pennsylvania in Philadelphia. The claims concern kickbacks from pharmaceutical manufacturers to Medco.
This is the second settlement involving a federal False Claims Act suit against a PBM; the Act allows private citizens to sue individuals and companies they believe have defrauded the government. Robins, Kaplan, Miller & Ciresi L.L.P. also represented three plaintiffs in the first major settlement of this kind, entitling the three whistleblowers to $137.5 million in their November 2005 settlement against Caremark Rx, Inc., formerly known as AdvancePCS, Inc.
"This qui tam settlement shows that the conduct we complained of will not be tolerated by employees or the government, and will lead to thorough scrutiny, legal action, and monetary consequences," said W. Scott Simmer, a partner in the health care litigation practice with Robins, Kaplan, Miller & Ciresi L.L.P. "Our client is to be commended." Simmer and firm attorney Thomas J. Poulin were counsel to the plaintiff.
The $9.5 million settlement is in conjunction with the settlements of two additional complaints filed against Medco.
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