DUSA Pharmaceuticals, a subsidiary of Sun Pharmaceuticals Industries (Sun Pharma), agreed to pay $20.75 million to the United States government to settle allegations that it violated the False Claims Act.
The settlement will resolve a lawsuit filed under the whistleblower provision of the False Claims Act. The law allows private parties to sue on behalf of the United States for false claims and receive a portion of the federal government’s recovery.
An individual named Aaron Chung, a former sales representative of DUSA Pharmaceuticals filed a civil lawsuit on behalf of the federal government. He will receive approximately $3.5 million as his share of the settlement amount.
As part of the settlement, DUSA Pharmaceuticals and Sun Pharma also entered into a Corporate Integrity Agreement with the Department of Health and Human Services (HHS) Office of the Inspector General (OIG). Under the agreement, the companies are required to establish and maintain a Compliance Program to ensure that both pharmaceutical companies comply with the statutes, regulations, and written directives of Medicare, Medicaid, FDA, and all other federal health care programs.
Allegations against DUSA Pharmaceuticals
According to the U.S. Department of Justice (DOJ), Dusa Pharmaceuticals and Sun Pharma encouraged physicians to submit false claims to the Medicare and the Federal Employee Health Benefits Program.
