Cypress Pays $2.8M To Settle FCA Suit Over Unapproved Drugs

Law360, Washington (March 28, 2012, 5:12 PM EDT) -- Generic-drug maker Cypress Pharmaceutical Inc. reached a $2.8 million deal with the U.S. Department of Justice to settle a False Claims Act whistleblower case alleging the company and its subsidiary sold medications to the government that were not approved by the U.S. Food and Drug Administration, the DOJ announced Wednesday.

For six years, Cypress, its subsidiary Hawthorn Pharmaceuticals Inc. and Hawthorn CEO Max Draughn allegedly sold three pharmaceutical products to physicians and Tricare, the military's health care program, despite knowing the drugs had not received FDA...
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