After New York City-based Forest Laboratories paid $313 million to settle a fraud case last year, the drugmaker's chairman and CEO is now facing a ban from doing business with federal health programs, according to a Bloomberg report.
Forest and CEO Howard Solomon were notified of efforts to bar Mr. Solomon in an April 12 letter from the Office of Inspector General at the Department of Health and Human Services. The action is part of a larger effort to increase executives' accountability for company actions and reduce fraud in federal health programs. If Mr. Solomon were to be excluded, he would be required to step down from his present executive positions.
The letter allowed Mr. Solomon 30 days to respond with reasons why he should not be excluded.
In a company statement, Forest announced Mr. Solomon will challenge the exclusion. "The potential action emanates from matters that were settled by Forest in 2010 with no finding of knowledge or wrongdoing by Mr. Solomon," the statement reads.
Mr. Solomon is one of few to face exclusion from participation in federal health programs. HHS has had the authority to ban officials since 1996, and as of November, the agency has moved against 28 individuals, according to the Bloomberg report.
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Forest and CEO Howard Solomon were notified of efforts to bar Mr. Solomon in an April 12 letter from the Office of Inspector General at the Department of Health and Human Services. The action is part of a larger effort to increase executives' accountability for company actions and reduce fraud in federal health programs. If Mr. Solomon were to be excluded, he would be required to step down from his present executive positions.
The letter allowed Mr. Solomon 30 days to respond with reasons why he should not be excluded.
In a company statement, Forest announced Mr. Solomon will challenge the exclusion. "The potential action emanates from matters that were settled by Forest in 2010 with no finding of knowledge or wrongdoing by Mr. Solomon," the statement reads.
Mr. Solomon is one of few to face exclusion from participation in federal health programs. HHS has had the authority to ban officials since 1996, and as of November, the agency has moved against 28 individuals, according to the Bloomberg report.
Related Articles on Pharmaceutical Companies:
Drugmaker Cardinal Health Pays $8M to Settle Kickback Allegations
Harvard Drug Group Pays $8M to Settle Claims of Failure to Report Suspicious Drug Orders
Endo Pharmaceuticals' Purchase of Pelvic Firm Shows Quest to Diversify