OIG - Office of Inspector General

10/30/2023 | Press release | Distributed by Public on 10/30/2023 12:33

Drugmaker Nostrum and CEO Agree to Pay Up to $50 Million to Resolve Claims of Underpaying Rebates Owed Under Medicaid Drug Rebate Program

Drugmaker Nostrum and CEO Agree to Pay Up to $50 Million to Resolve Claims of Underpaying Rebates Owed Under Medicaid Drug Rebate Program

BOSTON - Nostrum Laboratories, Inc. (Nostrum), located in Missouri and New Jersey, and its founder and CEO Nirmal Mulye, Ph.D. (Mulye), have agreed to pay a minimum of $3,825,000 and up to $50 million if certain financial contingencies are met, to resolve allegations that they violated the False Claims Act by knowingly underpaying Medicaid rebates due for Nostrum's drug Nitrofurantoin Oral Suspension (Nitro OS). The variable amount of the settlement is based on Nostrum's and Mulye's financial condition.

Read more on www.justice.gov

Action Details

  • Date:October 30, 2023
  • Agency:U.S. Attorney's Office, District of Massachusetts
  • Enforcement Types:
    • Criminal and Civil Actions

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