Drugmaker, CEO to pay $47M to settle alleged fraud scheme: 3 things to know

Pharmaceutical company QOL Medical and its CEO, Frederick Cooper, have agreed to pay $47 million to settle allegations that they violated the False Claims Act by offering kickbacks to healthcare providers to induce prescriptions for their drug Sucraid. 

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Here are three things to know:

  1. The settlement resolves claims from 2018 to 2022. QOL provided free Carbon-13 breath tests to doctors, falsely promoting them as a diagnostic tool for Congenital Sucrase-Isomaltase Deficiency, a rare genetic condition, according to a Nov. 15 Justice Department news release. 
  2. The breath tests did not diagnose CSID. QOL tracked positive test results and encouraged its sales force to target healthcare providers whose patients tested positive, pushing them to prescribe Sucraid, a high-cost drug, the release said. 
  3. Under the settlement, QOL and Cooper accepted responsibility for their actions, agreeing to pay $43.6 million for federal healthcare programs and $3.4 million for state Medicaid programs. Former employees, who filed the whistleblower lawsuit, will receive approximately $8 million as their share of the recovery. 

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