K-V Pharma (KV-A) Will Pay $17M ETHEX Settlement
K-V Pharmaceutical Company (NYSE: KV-A)(NYSE: KV-B) commented on the settlement of false claims allegations with the U.S. Department of Justice associated with the Company's former ETHEX generic pharmaceutical subsidiary.
In connection with a multi-defendant action captioned United States ex rel. Constance Conrad v. ETHEX Corp., et al., No. 02-11738-RWZ (D. Mass.), K-V has agreed to pay a total of $17 million over five years to resolve False Claims Act allegations raised by the government that ETHEX, the Company's former generic pharmaceutical subsidiary, allegedly failed to advise the Centers for Medicare and Medicaid Services (CMS) that two products -- Nitroglycerin Extended Release Capsules (Nitroglycerin ER) and Hyoscyamine Sulfate Extended Release Capsules (Hyoscyamine ER) -- purportedly did not qualify for coverage under federal health care programs. K-V admitted no wrongdoing in settling the matter. The settlement includes a multi-year payment schedule with nominal near-term capital requirements.
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In connection with a multi-defendant action captioned United States ex rel. Constance Conrad v. ETHEX Corp., et al., No. 02-11738-RWZ (D. Mass.), K-V has agreed to pay a total of $17 million over five years to resolve False Claims Act allegations raised by the government that ETHEX, the Company's former generic pharmaceutical subsidiary, allegedly failed to advise the Centers for Medicare and Medicaid Services (CMS) that two products -- Nitroglycerin Extended Release Capsules (Nitroglycerin ER) and Hyoscyamine Sulfate Extended Release Capsules (Hyoscyamine ER) -- purportedly did not qualify for coverage under federal health care programs. K-V admitted no wrongdoing in settling the matter. The settlement includes a multi-year payment schedule with nominal near-term capital requirements.
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