Case Number: No. 00-10698-MEL

Practice Area: False Claims Act, Qui Tam, & Whistleblower

Case Status: Settled

Settlement Amount: $515 million

Court: United States District Court for the District of Massachusetts

Berger Montague represented the whistleblower, Ven-A-Care of the Florida Keys, Inc., a small pharmacy from Key West, Florida. The case included allegations that Apothecon submitted false and inflated Average Wholesale Prices (“AWPs”) for a number of its oncology and generic drugs. Apothecon knew that the Medicare and Medicaid programs used AWPs for reimbursement of providers. These inflated prices created a “spread” between the reimbursement amount from the government and the actual prices for the drugs in the marketplace and thus an unlawful incentive to providers to choose defendants’ drugs.

In September 2007, the United States settled the case, along with several other cases, against the defendants (alleging kickbacks and off-label marketing). Apothecon and its parent company Bristol Myers Squibb (see companion case against Bristol also brought by Berger Montague) agreed to pay over $515 million in a global settlement to resolve the cases.

In announcing the settlement, an Assistant Attorney General for Massachusetts stated: “The integrity of our health care system rests on physicians being able to make decisions based on the best interests of their patients. This settlement reflects the Justice Department’s strong commitment to holding drug companies accountable for devising and implementing fraudulent marketing and pricing schemes that undermine that decision-making process at the expense of federal health care programs for the poor and elderly.”

About Berger Montague

Berger Montague is a national law firm focusing on complex civil litigation in federal and state courts throughout the United States. For over half a century, Berger Montague has played lead roles in consequential, precedent-setting cases and has recovered over $60 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago, Minneapolis, San Diego, San Francisco, Toronto, Wilmington, Del., and Washington, D.C.

schedule a free consultation

"*" indicates required fields

By clicking SUBMIT you agree to our Terms of Use and Privacy Policy and you are providing express consent to receive communications from Berger Montague via calls, emails, and/or text messages.

On the Cutting Edge of the Profession

Legal Intelligencer