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Drugmaker Schwarz Pharma To Settle Federal Fraud Suit For $22 Million

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BOSTON — Federal prosecutors say a pharmaceutical company has agreed to pay $22 million to settle allegations that it claimed federal reimbursement for medications that it was not eligible to collect.

Prosecutors announced that Schwarz Pharma Inc., now a subsidiary UCB SA of Belgium, allegedly submitted false reports to the U.S. government related to the drugs Deponit and Hyoscyamine Sulfate ER.

The government alleges that Schwarz misrepresented the regulatory status of both drugs and failed to advise that the drugs did not qualify for coverage under federal health care programs.

Neither medication ever received full regulatory approval for safety and effectiveness.

UCB did not immediately respond to an e-mail message seeking comment.

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Schwarz Pharma to pay $22 million in settlement