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• Government Actions:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  USDOJ and Biotek reMedys
  

  BioTek reMEDys Inc. (BioTek), located in New Castle, Delaware, and its chief executive officer, Chaitanya Gadde, have agreed collectively to pay $20 million based on their ability to pay to resolve allegations that they violated the False Claims Act by paying kickbacks to patients and physicians to protect its revenue stream.

  The government alleged that, from at least August 2015 through May 2020, BioTek, a specialty pharmacy that offers drugs and infusion services, routinely waived the copayments of Medicare and TRICARE patients to induce those patients to purchase its drugs and services. Many of the specialty drugs offered by BioTek were expensive and required patients to pay large copays. The government alleged that BioTek sought to avoid deterring patients from purchasing its drugs and services by engaging in a scheme, orchestrated and implemented by Gadde and others, to routinely waive these large copays, without regard for whether the patients were experiencing financial hardship.
  
  The settlement also resolves allegations that BioTek provided remuneration in the form of gifts, dinners and free administrative and clinical support services to physicians

  The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former employees. The qui tam case is captioned United States of America ex rel. Wyatt et al. v. BioTek reMEDys, Inc., No. 19-6069 (EDPA).

  The claims asserted by the United States are allegations only and there has been no determination of liability.

  
  

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