October 31, 1995 Modern Wholesale Drug Midwest Inc.
A generic drug distribution company, Modern Wholesale Drug Midwest Inc. has agreed to pay $7.5 Million Dollars to settle claims asserted in a qui tam action filed by a former employee, Eileen Doran. The allegations of the case were that the company failed to inform government negotiators fully about its pricing policies, and that it gave the government discounts that were lower than what it gave to other customers. Under federal law, the company was required to provide accurate information to government contract negotiators.
As part of the settlement, Ms. Doran will receive over $1 Million Dollars for having filed the qui tam case.
See U.S. Dept of Justice Press Release 10/31/95