Veloxis Agrees to Pay More Than $46 Million Over Alleged Healthcare Kickbacks
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Veloxis Pharmaceuticals agreed to pay more than $46 million to resolve criminal and civil allegations concerning kickbacks linked to Envarsus XR. The DOJ charged the company by criminal information with conspiracy to violate the Anti-Kickback Statute; under a three-year deferred prosecution agreement, Veloxis agreed to pay a $10.04 million criminal penalty, without a reported conviction in the supplied material.
The civil resolution includes $34.45 million to settle allegations under the False Claims Act involving payments to hospital personnel and specialty pharmacies, plus a $1.55 million CMS civil penalty over alleged failures to report physician payments under the Sunshine Act. The DOJ said the Sunshine Act penalty was its largest recovery under that law since 2010.
The matter highlights the need for controls over healthcare-provider hospitality, third-party payments and transparency reporting. It also shows that one conduct pattern may create parallel criminal, civil and regulatory exposure.