Kleiman Rajaram and Phillips & Cohen Announce Successful $46 Million Qui Tam Action Against Veloxis Pharmaceuticals

Veloxis Pharmaceuticals agreed to pay $46 million and accept a deferred prosecution agreement after admitting to illegal conduct involving kickbacks related to its drug Envarsus XR. The settlement was structured as $10 million in criminal penalties and $36 million in civil penalties under the False Claims Act.

The case was brought by two plaintiff law firms, Kleiman Rajaram and Phillips & Cohen, under the False Claims Act's qui tam whistleblower provisions, which permit insiders with nonpublic information to bring claims on behalf of the government when government-funded programs are defrauded. The settlement reflects investigation and prosecution by the U.S. Attorney's Office in Boston.

Under the False Claims Act's qui tam statutes, the whistleblower who brought the action is eligible to receive up to 25 percent of the total recovery. The deferred prosecution agreement requires Veloxis to comply with the law for at least three years or face full federal criminal prosecution.

This is a curated brief from the PlaintiffWire news desk. Read the original report at PR Newswire Legal.