Federal government paid millions of dollars it did not have to pay. The kickbacks-for-switches
scheme rendered the Defendant Manufacturers' quarterly pricing submissions under the 340b
program and their annual pricing submissions under the FSS program false claims, and caused
millions of dollars' worth of other false claims to be paid based on the fraudulent best price
switches scheme with Omnicare, including their resulting failure to report actual best price,
violated their contractual agreements certifying compliance with all applicable regulations as a
precondition for receiving payment for pharmaceuticals under the Medicaid, FSS and 340b
Acquisition Center's Contracting Officer of these "price reductions." Defendant Manufacturers
are therefore noncompliant with these programs and subject to exclusion from each of these
govermnent programs and other penalties.
On October 27, 2003, Lisitza filed a related qui tam complaint in the United
States District Court for the Northern District of Illinois, entitled U.S. ex reI. Lisitza et al. v. TAP
Phannaceuticals Products, Inc. and Omnicare, Inc., No. 03 C 7578 (N.D. Ill. 2003), against
Omnicare and another manufacturer. In that complaint, Lisitza detailed Omnicare's role in the
kickbacks-for-switches conspiracy, as well of the conduct of another Defendant Manufacturer,
TAP Pharmaceutical Products, Inc.
Defendant Manufacturers' unlawful activities also caused Omnicare to submit
millions of dollars in false claims to private companies providing health insurance to Illinois
residents, in violation of the Illinois Insurance Claims Fraud Prevention Act.