The United States has filed additional health care fraud claims against Novartis Pharmaceuticals Corp. while reaching a settlement with BioScrip, Inc. in connection with a multimillion-dollar kickback scheme involving the prescription drug Exjade. The government’s amended complaint seeks treble damages and civil penalties, claiming that Novartis provided kickbacks to BioScrip in exchange for BioScrip recommending refills to Exjade patients. According to the complaint, Medicare and Medicaid paid tens of millions of dollars in reimbursements as a result of this kickback scheme.

Simultaneous with the filing of the amended complaint, the government reached a settlement with BioScrip, under which BioScrip (1) agreed to pay approximately $11.7 million to the United States; (2) admitted facts about its relationship with Novartis; and (3) agreed to cooperate with the United States in the prosecution of the claims against Novartis. BioScrip also agreed in principle to pay an additional $3.31 million to settle state claims based on BioScrip’s same alleged conduct.

The allegations were originally raised in a whistleblower lawsuit filed by David Kester, a former employee.

Read the entire press release, Read the entire press release, “Manhattan U.S. Attorney Simultaneously Files Additional Healthcare Fraud Claims Against Novartis Pharmaceuticals Corp. And Settles Lawsuit Against Bioscrip, Inc., In Connection With A Multimillion Dollar Kickback Scheme Involving A Prescription Drug”
Read the “Stipulation and Order of Settlement and Dismissal as to BioScrip, Inc.”