Bristol-Myers Squibb Pays $75 Million to Settle Alleged Underpayment of Rebates
Pharmaceutical company Bristol-Myers Squibb has agreed to pay a total of $75 million plus interest, to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program. Approximately $41 million plus interest will go to the United States, the remainder to states participating in the settlement.
BMS allegedly underreported Average Manufacturer Prices for a number of its drugs by improperly reducing the reported AMPs for service fees paid to wholesalers, and by improperly excluding from the reported AMPs additional value it received from wholesalers. As a result, the company allegedly underpaid quarterly rebates owed to the states, which overcharged Medicaid.
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