Litigation > False Claims Act/Qui Tam Defense > State FCA Resource Center > New York Specialty Pharmacy Settles FCA Case
23 Oct '14

On October 9, 2014, New York’s Attorney General Eric T. Schneiderman announced an $846,000 settlement with New York specialty pharmacy Sorkin’s Ltd Rx. d/b/a CareMed Pharmaceutical Services (“Sorkins”) to resolve allegations that it violated the New York and federal False Claims Act (FCA) by making false statements and submitting false claims to the New York State Medicaid Program.

New York and federal authorities investigated Sorkin’s after Panna Nahar, a Sorkin’s clinical care coordinator, filed a qui tam action alleging that Sorkins defrauded Medicaid. According to the New York Attorney General, their joint investigation revealed that Sorkin’s had made false statements to obtain prior authorizations for certain prescription drugs, restocked and resold unused dosages of drugs for which it had already submitted claims and received payment, and submitted false claims to Medicaid and Medicare Part D. Following the investigation, New York and the federal government intervened.

Sorkin’s agreed to pay $846,244 to settle the claims, $465,423 of which will ultimately be paid to the State. The NY AG’s press release is available here.