8-KOther Events

Cencora, Inc. 8-K Report, Corporate Update (Nov 2, 2009)

Filed November 2, 2009For Securities:COR

Summary

This 8-K filing from Cencora, Inc. (formerly AmerisourceBergen Corporation) on November 2, 2009, discloses a significant legal development concerning allegations related to the sale of Amgen's anemia drug, Aranesp. Fourteen states and the District of Columbia have intervened in a previously filed qui tam lawsuit, naming Cencora's business units, ASD Specialty Healthcare and International Nephrology Network, as defendants alongside Amgen. The core of the allegations is that these Cencora entities, along with Amgen, conspired to offer inducements to healthcare providers to increase the use of Aranesp. The complaint further alleges that this conduct led to providers submitting false claims to state Medicaid programs and other federal health programs, constituting violations of federal and state civil False Claims Acts, fraud, and unjust enrichment. While the company had not received direct requests for information from state attorneys general prior to this intervention, it had received a subpoena from the Department of Justice related to the allegations.

Key Highlights

  • 1Fourteen states and the District of Columbia have intervened in a qui tam lawsuit, naming Cencora's subsidiaries (ASD Specialty Healthcare and International Nephrology Network) as defendants.
  • 2The lawsuit centers on allegations of conspiracy with Amgen to promote Aranesp through illegal remuneration to medical providers.
  • 3The core accusations include causing medical providers to submit false claims for Aranesp to state Medicaid and other federal health programs.
  • 4The alleged violations span from 2002 through 2009 and involve breaches of federal and state civil False Claims Acts, fraud, and unjust enrichment.
  • 5Cencora received a subpoena from the Department of Justice in June 2009 related to these allegations and is cooperating with the investigation.
  • 6The Department of Justice is not intervening but continues its investigation.
  • 7Cencora intends to defend itself vigorously and notes the potential for significant financial damages, penalties, and exclusion from federal health programs if found liable.

Frequently Asked Questions

Cencora is named as a defendant in a qui tam lawsuit, with fourteen states and the District of Columbia intervening. The lawsuit, filed originally by a former Amgen employee, alleges that Cencora's business units conspired with Amgen to improperly promote the drug Aranesp and facilitate the submission of false claims to government health programs.

The allegations state that ASD Specialty Healthcare and International Nephrology Network (a subsidiary's business name) conspired with Amgen to offer remuneration to medical providers to boost sales of Aranesp. It's also alleged that they caused medical providers to submit false claims for payment for Aranesp to state Medicaid and other federal health programs, violating civil False Claims Acts.

Yes, the Department of Justice (DOJ) is investigating the allegations and issued a subpoena for records to Cencora in June 2009. Cencora is cooperating with the DOJ investigation. The company states it intends to defend itself vigorously against all allegations in the lawsuit.

The filing warns that violations of relevant laws can lead to significant financial damages, criminal and civil penalties, and potential exclusion from participation in federal health programs. The ultimate outcome of the lawsuit and the DOJ investigation is unpredictable.