Bristol-Myers Squibb To Pay NYC $7.5M in Damages

New York Sun
By E.B. SOLOMONT

The pharmaceutical company Bristol-Myers Squibb agreed yesterday to pay New York City $7.5 million in damages stemming from allegations of Medicaid fraud.

The company also agreed to pay $40 million to New York State under the deal, which was negotiated by the city and by the state’s attorney general, Andrew Cuomo.

The agreement stems from claims made in 2004, when the city filed lawsuits against 44 pharmaceutical companies for allegedly inflating the average wholesale price of their drugs. As a result, the city alleged that millions of dollars of charges were added to its Medicaid budget.

The suits sought to “rein in the widespread fraudulent practices that unlawfully inflate the City’s Medicaid costs,” the city’s corporation counsel, Michael Cardozo, said in a statement announcing the settlement. “We are pleased at the successful resolution reached with one of the defendants, and hope to reach similarly successful resolutions with others.”

Advertisements

Leave a comment

Filed under Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s