would have to pay to the Plaintiff States for their preferred medications.
The Defendant Manufacturers know, and have known at all times relevant to the
complaint, that the price it has charged Omnicare, inclusive of their kickback payments made
pursuant to the Market Share Agreements, must be disclosed in their mandatory quarterly price
reports submitted directly to the CMS.
purposefully did not report the off-invoice kickback price Omnicare was afforded under the
Market Share Agreements. Instead, the Defendant Manufacturers knowingly and deliberately
concealed the price they charged Omnicare when they calculated best prices for their preferred
Had the Defendant Manufacturers truthfully reported to the CMS the best prices
for their prefelTed medications, the Defendant Manufacturers would have owed the govemment
rebates of a much higher amount.
By submitting false claims reports to the govemment for the purpose of avoiding
their obligation to make higher rebate payments to the government, the Defendant Manufacturers
violated the federal and Plaintiff States' False Claims Acts.
govemment constitutes a violation of 31 U.S.C. §3729(a)(7). The Defendant Manufacturers
have failed to accurately report their best prices for their preferred medications for each quarter
of the last several years.
Each of the Defendant Manufacturers' intentional and fraudulent failures to report
accurate best price information meant that the prices charged the federal govemment for
medications paid for by PHS entities were artificially high. Every PHS entity invoice therefore