April 29, 2010 — Schwarz Pharma

Schwarz Pharma Inc. has agreed to pay $22 Million to resolve qui tam claims filed against it by private relators, Constance Conrad and James Conrad.

The allegations of the case were that the company failed to advise the centers for Medicare and Medicaid Services (CMS) that two unapproved drugs did not qualify for coverage under federal health care programs.

As a result, the government contended, the company caused the submission of false claims seeking reimbursement from federal health programs, for drugs which had never received full regulatory approval for safety.

As a reward for having filed their qui tam claim, Constance Conrad and James Conrad will receive $1,836,575.

See U.S. Dept of Justice Press Release 04/29/10

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