New York pharmacy, drug manufacturer to pay $30m for defrauding consumers

New York-based drugmaker Accredo is expected to pay more than $30 million to settle federal and state charges that it defrauded consumers by lying about the benefits of its drug OxyContin and misappropriating patients’ identities.

The agreement with the Justice Department and the Food and Drug Administration is aimed at preventing future fraud.

Accredo pleaded guilty in November to two counts of wire fraud and one count of conspiracy to commit wire fraud, and its former president, Daniel H. Schmitz, is also on trial.

The company has admitted it knew about some of the fraud and failed to prevent it.

Schmitz’s plea agreement said that while he was an executive at Accredo, his “personal financial interests were not in the best interest of the company, the company’s stockholders, the public, or any other person.”

The company, which makes OxyContin, has been accused of using false information about the drug’s safety and efficacy.

Hoffman and Schmitsons lawyers did not immediately respond to requests for comment.

Schlottetters’ health care coverageThe lawsuit was filed in June by three people who said they had been enrolled in Medicare Advantage plans that were purchased by Accredo.

The plaintiffs alleged that the insurer had misrepresented the benefits that its prescription drug plan offered, including a reduction in out-of-pocket costs.

The insurers said they stopped purchasing the Accredo plan because of the deceptive marketing.

The settlement, which was reached in September, includes payments to reimburse the insurers for all of the costs of the lawsuits, including legal fees.

Accredo has denied the claims.

The New York Attorney General’s Office, which is investigating the claims, said it is looking into the matter.

The company’s chief executive, Richard H. Hoffmann, is accused of lying to the Medicare Advantage programs about the company providing better coverage than the other insurers.

In February, the Senate Judiciary Committee held hearings on Medicare Advantage fraud, including whether Accredo misled Medicare about the benefit of the plan.