DAVA Pharmaceuticals Agrees to $11-Million Settlement

The Justice Department says that a New Jersey-based pharmaceuticals company has agreed to pay the U.S. $11 million to settle allegations on misreporting drug prices.

The government said Wednesday that Dava Pharmaceuticals Inc. agreed to the settlement over charges that it violated the False Claims Act by misreporting drug prices to reduce its Medicaid Drug Rebate obligations.

Under the rebate program, participating drug companies must pay rebates to state Medicaid programs based in part on whether a drug is a generic or branded product.

The Justice Department says that a whistleblower will receive 15 percent of the settlement proceeds.

Dava did not immediately return a call seeking comment.

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