Astellas Agrees to an $18 Million Settlement for Underpaying Manufacturer Rebates
On October 15, 2021, Astellas Pharma U.S., Inc., reached an $18 million settlement for alleged False Claims Act violations. The Relator, a former executive of a network of regional drug wholesalers, alleged that the company underpaid manufacturer rebates under the Medicaid Drug Rebate Program, thereby violating the False Claims Act.
In November 2014, the Relator filed a qui tam lawsuit alleging that the Covered Conduct took place from October 1, 2007, through March 31, 2016. According to the settlement, Astellas was required to report the Average Manufacturer Price (AMP) for each of its covered outpatient drugs to the Centers for Medicare and Medicaid Services (CMS) on a monthly and quarterly basis under the Medicaid Drug Rebate Program. Astellas was also to pay quarterly rebates to state Medicaid programs based (at least in part) on the quarterly AMPs.
