Kaléo Paying $12.7 Million to End False Claims Case

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Virginia pharmaceutical manufacturer kaléo has agreed to pay $12.7 million to resolve a whistleblower’s allegations that it caused the submission of false claims for its Evzio, an injectable form of naloxone HCl indicated for use to reverse opioid overdose. A Department of Justice statement says that between 3/14/2017 and 4/30/2020 the company directed prescribing doctors to send Evzio prescriptions to certain preferred pharmacies that then (1) submitted false prior authorization requests for Evzio that misrepresented to insurers that the prescribing doctors submitted the request, and (2) dispensed Evzio without collecting or attempting to collect co-pay obligations from government beneficiaries.

“The United States contends that kaléo knew of or deliberately ignored this pharmacy misconduct, but nevertheless kept directing business to these pharmacies,” the department says. “The United States also alleges that kaléo provided illegal remuneration to prescribing physicians and their office staff in violation of the anti-kickback statute to induce and reward their prescribing of Evzio.”

The former kaléo employee who brought the whistleblower charges will receive $2,548,600 of the settlement amount.

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