Pharmaceutical supplier settles whistleblower suit for $49.5 million

One of the nation’s largest suppliers of pharmaceutical services to the elderly will pay $49.5 million to settle Medicaid fraud claims. Chicago lawsuits charging the company with fraudulent acts were filed by the federal government and two whistleblowers. The lawsuits alleged that the company gave Medicaid patients more expensive drugs than it needed to, which allowed them to increase the amounts it charged Medicaid by millions of dollars. This Chicago lawsuit was based on a wide-ranging investigation involving state officials in many states throughout the U.S. As indicated in this case, the role of corporate insiders, who blow the whistle on companies that cheat the government, is essential to justice.

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