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Cardinal Health, Inc.

Medicine Shoppe Pharmacy Kickbacks

Date: 04/21/2011 (Date of Settlement Announcement)

Misconduct Type: Ethics

Enforcement Agency: Health and Human Servs.

Contracting Party: None

Court Type: Civil

Amount: $8,000,000

Disposition: Settlement

Synopsis: Cardinal Health agreed to pay the United States $8 million to resolve claims that it violated the False Claims Act by paying $440,000 to induce the owner of a chain of pharmacies to purchase Cardinal’s prescription drugs. Pharmacy consultant Kevin Rinne and pharmacy owner R. Daniel Saleaumua alleged that Cardinal offered them $300,000 in cash and $140,000 in discounts to get Saleaumua’s seven Kansas City-area pharmacies to switch to Cardinal as a supplier, an arrangement that, according to federal prosecutors, constituted an illegal kickback.