Akorn Pays $7.9 Million to Resolve False Claims Suit

The Justice Department says Akorn Operating Company, an Illinois pharmaceutical company, has agreed to pay $7.9 million to resolve a whistleblower’s allegations that it caused Medicare to pay false claims by delaying its request to FDA to switch drugs from prescription to over-the-counter. A department statement says Akorn caused Medicare Part D to pay for three generic drugs that were no longer eligible for Medicare coverage. As part of the settlement, it says, Akorn admits that it continued to sell generic drugs under obsolete prescription-only labeling.

The whistleblower will receive about $946,000 from the settlement proceeds, the statement says.

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