Clinics Ink $2M FCA Deal In Reimported Drugs Case

Law360, New York (January 24, 2014, 6:58 PM EST) -- A pair of Tennessee-based orthopedic clinics will shell out a combined $1.85 million to settle a whistleblower’s False Claims Act allegations that they illegally bought lower-cost prescription drugs from foreign sources in order to profit more off Medicare reimbursements, the U.S. Department of Justice said Friday.

Appalachian Orthopaedic Associates PC and Tennessee Orthopaedic Clinics PC, which did not admit any wrongdoing, were accused of breaching federal law by reimporting osteoarthritis medications. The process, which is generally unlawful, involves going outside the U.S. to purchase medicines that...
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