KV Pharma To Shell Out $17M In FCA Settlement

Law360, Washington (December 6, 2011, 6:42 PM EST) -- KV Pharmaceutical Co. agreed Tuesday to pay $17 million to resolve a former subsidiary's role in a long-running False Claims Act qui tam action alleging it wrongly reported to Medicaid and Medicare programs that two drugs were qualified for coverage under the federal health care systems.

St. Louis-based KV was the parent company of now-defunct Ethex Corp., which allegedly filed the false reports for nitroglycerin extended-release capsules and hyoscyamine sulfate extended-release capsules, law enforcement officials said Tuesday.

“Today’s settlement underscores our commitment to pursuing pharmaceutical companies...
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