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Lawsuit in New Jersey involving prescription drug company settles

Businesses in New Jersey are bound to run into legal problems eventually. For some, the only option is to fight the case all the way to a jury trial. But, for others, it can be more economical to settle out of court. For one company with pending business litigation in U.S. District Court in New Jersey, the latter was the option that was chosen.

According to a recent report, Omnicare, a prescription drug company, settled a whistleblower claim for $8 million. The claim had originated from allegations that arose from two pharmacists in Pennsylvania, who stated that the company was engaging in a scheme to bill both Medicaid and Medicare falsely for prescription drugs. The report indicates that when the two pharmacists informed Omnicare of the alleged scheme, they were fired.

As long as businesses in New Jersey are conducting operations in a legal fashion, they should be protected from whistleblower claims like this. However, that doesn't prevent someone from bringing a claim, true or not.

Business disputes like this can reach the point where a jury trial is the only option. However, as the goal of most companies is to maximize profit and minimize loss, sometimes a cost/benefit analysis to business litigation lends more credibility to settling rather than a full-blown, public trial. When a settlement like this is reached, typically there is no admission of guilt from the defendant in the case. That alone can make an attempt to settle the case worth the financial cost for businesses in New Jersey.

Source: New Jersey Law Journal, "Omnicare Settles 28-State Whistleblower Complaint for $8M," Robert Storace, May 17, 2017

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