CTI pays $10.5 Million to Settle Medicare Qui Tam Suit
Cell Therapeutics, Inc. (CTI) settled all government claims arising out of a Department of Justice investigation into allegations regarding alleged overpayments by Medicare to doctors who prescribed the anti-cancer drug, TRISENOX. As part of the settlement, CTI will pay $10.5 million plus interest and the Department of Justice has agreed to fully release CTI from all liability for the issues under investigation, including claims asserted in a qui tam lawsuit. The terms of the settlement contain no admission of wrongdoing by CTI.
According to a recent Seattle Times Article, Peter Kessler, Assistant Attorney General for the Justice Department's Civil Division, stated "They misled a lot of doctors by telling them that the drug was medically accepted." Cell Therapeutics blamed Medicare billing issues on consulting firm, Lash Group, a unit of pharmaceuticals distributor AmerisourceBergen. Lash denies the company's allegations.
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