Nostrum Laboratories Inc, located in Missouri and New Jersey, and its Indian American founder and CEO, Nirmal Mulye, have agreed to pay up to $50 million to settle charges of knowingly underpaying Medicaid rebates.
Muley and his firm are accused of violating the False Claims Act by knowingly underpaying Medicaid rebates due for Nostrum’s drug Nitrofurantoin Oral Suspension (Nitro OS), according to a Justice Department press release.
The settlement calling for payment of a minimum of $3,825,000 and up to $50 million if certain financial contingencies are met, is based on Nostrum’s and Mulye’s financial condition, the release stated.
Source: Indian American-led drug firm to pay $50 million fine / The American Bazaar