FOR IMMEDIATE RELEASEAG
FRIDAY, FEBRUARY 9, 2001(202) 514-2007
WWW.USDOJ.GOVTDD (202) 514-1888
MOORE MEDICAL TO PAY $5.2 MILLION FOR OVERCHARGING
THE DEPARTMENT OF VETERANS AFFAIRS
WASHINGTON, D.C. -- Moore Medical Corp. has agreed to pay the United States $5.2 million to resolve civil claims under the False Claims Act and administrative claims that the New Britain, Connecticut company overcharged the Department of Veterans Affairs (VA) in the early to mid-1990s for pharmaceutical products, as well as medical and surgical items, the Justice Department announced today. The government alleged that Moore knowingly failed to abide by its contract that required the company to give the Veterans Administration the same or better prices that were given to its most favored customers.
According to the settlement agreement, Moore failed to submit current, accurate and complete pricing information to the agency. Also, the company did not notify the VA of price reductions.
The VA's Office of Inspector General, the United States Attorney for the District of Connecticut, and the Civil Division of the Department of Justice investigated the matter after Moore submitted reports to the VA Office of Inspector General in late 1997.
The case is entitled United States ex rel. Sieg v. Moore Medical, Inc., Civil No. 3:98 CV 954 (CFD) (D. Conn.).