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Conrad v. Eon Labs (False Claims)
Date: 02/22/2010 (Date of Announcement)
Misconduct Type: Government Contract Fraud
Enforcement Agency: Health and Human Servs.
Contracting Party: Health and Human Servs.
Court Type: Civil
Synopsis: Novartis subsidiary Eon Labs Inc. agreed to pay the United States $3.5 million to resolve False Claims Act allegations relating to the company's drug Nitroglycerin Sustained Release (SR) capsules. In 1999, the Food and Drug Administration (FDA) determined that Nitroglycerin SR lacked substantial evidence of effectiveness and published a notice proposing to withdraw its approval of the product. The government claimed that, after the FDA notice, Nitroglycerin SR no longer was legally eligible for reimbursement by government health care programs, but Eon continued to submit false quarterly reports to the government that misrepresented Nitroglycerin SR's regulatory status and failed to advise that Nitroglycerin SR no longer qualified for Medicaid coverage.