chevron-down Created with Sketch Beta.
November 03, 2023

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

On October 30, 2023, the Department of Justice announced that Nostrum Laboratories Inc. and its CEO “agreed to pay a minimum of $3,825,000, and up to $50 million if certain financial contingencies are met,” to resolve False Claims Act allegations associated with  Medicaid rebates for a drug calledNitro OS. After acquiring and relaunching Nitro OS in August 2018, Nostrum increased the drug’s price from $474.75 to $2,392.32 per bottle– triggering significantly higher Medicaid Drug Rebate invoices from State Medicaid programs– but allegedly did not pay the entire invoiced amounts. 

The material in all ABA publications is copyrighted and may be reprinted by permission only. Request reprint permission here.