The suit was brought by a former vice president of Medco Health Solutions Inc. (MHS) on behalf of the U.S. government, 11 states and the District of Columbia. The former Medco employee plans to continue with the case even though the Justice Department and state officials declined to get involved, AstraZeneca disclosed Thursday.
It wasn't clear why the government didn't get involved. A spokeswoman for the office of the U.S. Attorney for the Eastern District of Pennsylvania declined immediate comment, and a lawyer for the former Medco employee declined immediate comment.
"AstraZeneca believes the case is without merit and intends to defend itself vigorously," said spokeswoman Laura Woodin. A Bristol-Myers spokeswoman declined to comment.
Karl Schumann, of Ringwood, N.J., filed the suit in federal court in Philadelphia in 2003, under seal in accordance with a law designed to protect would-be whistleblowers and to give the government time to investigate. Because the government has now declined to intervene, the suit was unsealed in June and AstraZeneca and Bristol-Myers were served with the complaint earlier this month.
Schumann previously handled pharmaceutical contracting for Medco of Franklin Lakes, N.J., one of the biggest companies that manage drug plans for employers and insurers. Schumann also was one of the whistleblowers behind Medco's $155 million settlement of federal fraud claims in 2006. He received a portion of that settlement along with other whistleblowers, and stands to do the same if his newly disclosed suit results in a settlement.
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