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US DOJ Settles Whistleblower Suit With RxAmerica

On October 15, 2012, the U.S. Department of Justice issued a press release setting forth the details of the qui tam (“whistleblower”) case against RxAmerica. The government settled the False Claims Act claims against RxAmerica for $5.25 million. It is one of the first federal False Claim Act settlements regarding a Medicare Part D plan.

The lawsuit alleged that RxAmerical made false submissions regarding pricing for prescription drugs under Part D of Medicare resulting in some cases of significantly higher payment for claims that were accurate.

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“Forest, once again, my family and I thank you for obtaining another settlement on behalf of my Father. It’s almost uncanny that these checks seem to come at very opportune times. This one comes as we are expecting our fourth grandchild. It will provide her some sound footing towards her future college education, plus help Mom and Dad with the medical expenses. Sometimes, I think my Dad is helping you guys with this. Maybe so. Anyway, thank you again for your hard work.”

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