The Justice Department has filed a False Claims Act complaint against Regeneron Pharmaceuticals.
The complaint alleges that Regeneron fraudulently inflated Medicare reimbursement rates for its drug Eylea by knowingly submitting false average sales price reports to CMS that excluded certain price concessions, according to an April 10 news release from the Justice Department.
The United States alleges that Regeneron knowingly did not report price concessions in the form of credit card processing fees that the company paid to specialty drug distributors to benefit its customers.
The lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act, which allows private parties to file an action on behalf of the United States and receive a portion of the recovery. The act allows the Justice Department to intervene in and take over the action, as it has done in this case.
Becker's has reached out to Rengeron for comment. This story will be updated if more information is received.