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the government exceeds $10 million.

COUNT III False Claims Act, 31 U.S.c. §3729(a)(7) Knowingly Making or Using a False Statement to Avoid or Conceal Obligations (Against All Defendants)

  • 282.

    Plaintiffs reallege and incorporate by reference Paragraphs 1-261 set forth above.

  • 283.

    Each of the Defendant Manufacturers entered into Rebate Agreements with the

Medicaid Program under which the Medicaid Program would receive rebates determined in part

by "best price" which is defined as "the lowest price available from the manufacturer."

284.

After

execution

of

the

Rebate

Agreements,

the

Defendant

Manufacturers

submitted quarterly price reports directly to the government purportedly reflecting "best price" in

each quarter to the Medicaid program for the "preferred" medications.

285.

In

keeping

with

their

scheme

to

defraud

the

government,

the

Defendant

Manufacturers, with respect to their preferred medications - Monopril, Abilify, Accupril, Lipitor.

Levaquin, UltramlUltacet, and Risperdal - submitted fraudulent quarterly price reports which

intentionally misrepresented the best prices for their preferred medications by willfully 1)

reporting higher prices and 2) excluding price cuts and other inducements offered to Omnicare

that resulted in lower prices than the prices repOlied to the Medicaid program.

286.

The Defendant Manufacturers intentionally submitted these false reports to avoid

paying higher rebates as required by federal law and their Rebate Agreements.

287.

The Defendant Manufacturers knowingly made and used these false price reports

and other false records and statements with the intent to conceal, avoid, or decrease an obligation

to payor transmit money to the government, e.g. their mandatory Medicaid rebate payments.

288.

The Defendant Manufacturers had the authority and responsibility to make such

reports, improperly abused the exercise of such authority, and as a direct and proximate result,

74

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