Menu
Federal Contractor Misconduct Database (FCMD)
The federal government routinely awards contracts to companies with
histories of misconduct, including
…
contract fraud and other
violations. POGO believes that providing this website will help to
improve contracting decisions and increase public knowledge of how
the government spends billions of taxpayer dollars each year.
Read more…
Conrad v. Eon Labs (False Claims)
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.
- Misconduct Type
- Government Contract Fraud
- Enforcement Agency
- Health and Human Services
- Contracting Party
- Health and Human Services
- Court Type
- Civil
- Disposition
- Settlement
- Date of Announcement
- 2/22/2010
Contractors Involved |
Penalty |
Total |
|
Novartis AG |
$3,500,000
|