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DUSA Inc. Settles FCA Lawsuit for $20m

DUSA Pharmaceuticals, Inc. has agreed to pay the U.S. $20.75 million to settle a lawsuit filed under the whistleblower provision of the False Claims Act. DUSA, a subsidiary of Sun Pharmaceutical Industries, Inc., was accused of knowingly promoting a topical drug administration schedule program that resulted in fraudulent billings to Medicare and the Federal Employee Health Benefit Program. DUSA encouraged the drug administration program, which was neither approved within the FDA product instructions nor verified by sufficient clinical data, by offering prescribers paid speaker positions and programs, providing false or misleading information, and promotion by the company sales team. The U.S. alleged that senior officials of DUSA and Sun Pharma were aware that the new administration schedule resulted in significantly lower clearance rates for the indicated health condition, and that pushing the schedule “undermine[d] the health of patients and the financial integrity of federal health care programs.” The whistleblower and relator, a former sales representative of DUSA, will receive $3.5 million as part of the case’s resolution.

Learn more here: https://www.justice.gov/opa/pr/dusa-pharmaceuticals-pay-us-2075-million-settle-false-claims-act-allegations-relating

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