Lantheus Settles False Claims For $6.2M; Whistleblower to Get $1.1M

Lantheus Medical Imaging and Bristol-Myers Squibb have agreed to pay $6.2 million to settle allegations that the company failed to pay New York State and City taxes, in violation of the False Claims Act, the New York Attorney General’s office announced.

Lantheus and its former parent company, Bristol-Myers Squibb, allegedly did not pay applicable New York State business franchise taxes, New York City corporation taxes or MTA surcharges from 2002 to 2006, when Lantheus was known as Bristol-Myers Squibb Medical Imaging. During that period, the company derived substantial revenues from its sales of medical imaging products to hospitals, clinics and other facilities in New York and from its training and servicing activities in connection with its sales.

The lawsuit was originally filed by a tax services provider who became aware of Lantheus’ failure to pay New York taxes, under the whistleblower provision of New York’s False Claims Act.  The Act is one of the state's most powerful civil fraud enforcement tools because it allows whistleblowers and prosecutors to take legal action against companies or individuals that defraud the government.  Under the False Claims Act, whistleblowers may be eligible to receive up to 30 percent of any money recovered by the government as a result of information they provide. The whistleblower in this action will receive $1.1 million from the settlement proceeds.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.