PharMerica Corp. is in big trouble.

The U.S. government just sued the long-term care pharmacy company for violating the False Claims Act and Controlled Substances Act. According to the government’s suit, PharMerica allegedly dispensed controlled substances without valid prescriptions and subsequently submitted false claims to Medicare for the illegally dispensed drugs, which included the highly abusive oxycodone and fentanyl.

The suit comes after an ex-PharMerica employee filed a whistleblower complaint against the company in July 2009. The employee claimed that between 2007 and 2009, PharMerica dispensed controlled drugs several thousand times without prescriptions and submitted false claims to Medicare at least 250 times.

Read Reuters and the Wall Street Journal for more about the suit.


For more InsideCounsel stories about the pharmaceutical industry, read:

Pfizer agrees to pay $491 million in drug suit

GlaxoSmithKline admits executives may have violated Chinese law with bribes

Ex-pharmacist sues CVS

Affordable Care Act provision reveals drug companies’ payments to doctors starting Aug. 1

J&J agrees to pay $22.9 million to settle recall suit

Walgreens reaches $80 million settlement over painkillers