Veloxis Pharmaceuticals to Pay $46 Million Over Kickback Allegations

The settlement breaks down into a $10 million criminal penalty alongside $36 million in civil payments to resolve claims that the company concealed illicit payoffs. Under the terms of the deferred prosecution agreement, Veloxis must adhere to strict legal compliance standards for at least three years or face the threat of full federal criminal prosecution. The case originated from whistleblower provisions that permit individuals with nonpublic information to bring lawsuits on behalf of the government when programs are defrauded.

Attorneys Mark Kleiman and Pooja Rajaram of Kleiman Rajaram, joined by Erika Kelton and Emily Stabile of Phillips & Cohen, led the effort to hold the company accountable. Kleiman noted that the process requires significant courage from insiders, while Kelton emphasized that such actions rely on those closest to the misconduct to spark government intervention. The whistleblower in this matter is eligible to receive up to 25% of the total recovery under the False Claims Act. The U.S. Attorney’s Office in Boston oversaw the investigation, marking a significant outcome in healthcare fraud enforcement.