A settlement has been reached to resolve False Claims Act allegations against Genzyme Corporation.
The allegations arose from a lawsuit that claimed Genzyme treated millions of dollars in payments to wholesalers as “discounts,” when in fact the payments were for legitimate services rendered. By treating the payments as discounts, the manufacturers reported lower average manufacturer prices, which consequently led them to pay less in rebates to state Medicaid programs.
Reportedly, this alleged fraud scheme had never been revealed in any previous lawsuit or government enforcement operation.
Allegedly, the Whistleblower who brought this lawsuit forward, claimed that a second category of defendants, specifically, nine pharmaceutical manufacturers defrauded state Medicaid through a different scheme which also involved payments to wholesalers.
