Breaking Finance News

BREAKING- Justice Department Files Lawsuit Against PharMerica (PMC)

Shares of PharMerica (NASDAQ: PMC) are down more than 5 percent after the U.S. Justice Department filed suit against the company.

Here are the key points in the filing.

  • “Violated the False Claims Act and the Controlled Substances Act by dispensing controlled drugs without valid prescriptions and causing claims for illegally dispensed drugs to be submitted to the Medicare program.”
  • “The government’s complaint alleges that PharMerica routinely dispensed Schedule II controlled drugs in non-emergency situations without first obtaining a written prescription from a treating physician.”
  • “The False Claims Act allegations in this case, which involve Medicare billings for the dispensing of Schedule II controlled substances absent valid prescriptions, are precisely the type of allegations that our office and the Civil Division examine carefully, investigate fully, and prosecute vigorously—to protect taxpayer monies and to promote the delivery of professional health care to all of our constituents.”

Plain English

Stripping out the legal wording, the complaint accuses PharMerica of dispensing controlled substances like oxycodone and fentanyl, both heavily abused drugs without a valid prescription. Not only that, they billed medicare for the charges. The justice department obtained evidence from a former employee, Jennifer Derk who filed a complaint in 2009. In 2010, two other employers came forward with similar complaints.

Read the full complaint here.

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Disclosure: At the time of this writing, the author had no position in the company mentioned.

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