Justice Dept.: Drugmaker Nostrum and Its CEO Agree to Pay Up to $50 Million to Settle False Claims Act Claims for Underpaying Rebates Owed Under Medicaid Drug Rebate Program
October 30, 2023
October 30, 2023
WASHINGTON, Oct. 30 -- The U.S. Department of Justice issued the following news release:
Nostrum Laboratories Inc. (Nostrum), located in Missouri and New Jersey, and its founder and CEO, Nirmal Mulye, Ph.D. (Mulye), have agreed to pay a minimum of $3,825,000, and up to $50 million if certain financial contingencies are met, to resolve allegations that they violated the False Claims Act by knowingly underpaying Medicaid rebates due for Nostrum's drug Nitrofurantoin Oral Suspension (N . . .
Nostrum Laboratories Inc. (Nostrum), located in Missouri and New Jersey, and its founder and CEO, Nirmal Mulye, Ph.D. (Mulye), have agreed to pay a minimum of $3,825,000, and up to $50 million if certain financial contingencies are met, to resolve allegations that they violated the False Claims Act by knowingly underpaying Medicaid rebates due for Nostrum's drug Nitrofurantoin Oral Suspension (N . . .