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# Veloxis Paying $46 Million to Resolve Kickback Charges
- URL: https://www.fdaweb.com/veloxis-paying-46-million-to-resolve-kickback-charges/
- Published: 2026-08-11T12:00:00.000Z
- Updated: 2026-09-14T13:44:56.000Z
- Author: David McFarland
- Tags: Drugs, FDA Policy/General, #legacy-id-D5161605

The Department of Justice says it has reached a deferred prosecution agreement (DPA) with Veloxis Pharmaceuticals under which the company will pay $46 million to resolve criminal and civil allegations that it paid kickbacks to induce prescriptions and purchases of Envarsus XR (envarsus), its kidney transplant immunosuppressive drug. A department [announcement](https://www.justice.gov/opa/pr/veloxis-pharmaceuticals-agrees-pay-over-46m-resolve-criminal-and-civil-liability-kickback?ref=fdaweb.com) says a criminal indictment charged Veloxis with paying for, among other things, lavish meals, expensive alcohol, and luxury resort stays to induce healthcare providers to recommend or prescribe Envarsus. As part of the DPA, the company will pay a criminal penalty of more than $10 million.

The government says the resolution also includes a civil settlement of allegations that Veloxis caused the submission of false claims to federal healthcare programs by paying kickbacks to hospital personnel and specialty pharmacies in violation of the False Claims Act. The company will pay $54.45 million to the U.S. and specific states to resolve the civil allegations. It will also pay a $1.55 million civil penalty to the Centers for Medicare and Medicaid Services (CMS) to resolve allegations that Veloxis knowingly failed to report to CMS certain payments to doctors under the Open Payments Program (Sunshine Act). The Justice Department says it is the largest Sunshine Act recovery since the law was passed in 2010.

Under a Corporate Integrity Agreement with the HHS inspector general, Veloxis will implement a significant corporate compliance program, including adopting an enhanced system of policies, procedures, and internal controls designed to deter and detect violations of the anti-kickback law and implementing enhanced oversight, reporting, and enforcement mechanisms.

The government says that some of the claims resolved in the settlement were first raised by a whistleblower under the False Claims Act. It does not indicate how much of the settlement the whistleblower received.