Glenmark Pays $25 Million in False Claims Case

The Department of Justice says Glenmark Pharmaceuticals, a generic drug manufacturer based in Mahwah, NJ, has agreed to pay $25 million, based on its ability to pay, to resolve its alleged liability under the False Claims Act for conspiring to fix the price of generic pravastatin (Pravachol). A department statement says the government alleges that between 2013 and 2015, Glenmark paid and received compensation prohibited under the anti-kickback law through arrangements on price, supply, and allocation of customers with other drug manufacturers.

The company previously entered into a deferred prosecution agreement with the department’s antitrust division to resolve related criminal charges by paying a criminal fine of $30 million, the statement says. It says Glenmark admitted to conspiring with two other generic drug companies to fix prices on pravastatin. The civil settlement payment is in addition to the criminal settlement payment, the department says.