AmerisourceBergen Corporation (ABC) pleaded guilty to illegally distributing contaminated, misbranded drugs. The company agreed to pay states and the federal government $625 million to settle the case.
According to New York Attorney General Barbara Underwood, ABC reached an agreement in principle with 44 states and the federal government.
Out of the $625 million, $99,875,000 will go to the state’s Medicaid program. New York’s Medicaid program will receive $6,658,957.
In addition, the company’s subsidiary, AmerisourceBergen Specialty Group (ABSG) admitted distributing misbranded drugs in September 2017. ABSG agreed to pay $260 million in criminal fines and forfeitures.
Allegations against Amerisource Bergen Corporation and its subsidiary
The settlement agreements resolve allegations by the states and the federal government that ABSG’s pharmacy, Medical Initiatives, Inc. caused the submission of false claims to Medicaid for unapproved new drugs and contaminated, compromised, or defective drugs. The pharmacy also caused double billing for the same vial of drug product.
