Eon Labs Inc. has agreed to pay the United States $3.5 million to settle False Claims Act allegations that the company knowingly enabled false Medicaid claims to be made for its drug Nitroglycerin Sustained Release (SR) capsules. 

The company allegedly misrepresented Nitroglycerin SR’s regulatory status through false quarterly reports to the government after the FDA determined the drug lacked sufficient evidence of effectiveness and was therefore ineligible for reimbursement by government health care programs such as Medicaid. 

The settlement resolves the allegations against Eon in a multi-defendant whistleblower action, and is the first False Claims Act agreement involving a drug company that sought to charge the government for inadequately effective drugs. 

The whistleblower will receive approximately $525,000 as a result of the settlement.

Click here to read the full article, “Eon Labs Pays U.S. $3.5 Million to Settle Allegations of Submitting False Claims to Medicaid”.