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AmerisourceBergen (ABC), one of the largest U.S. prescription drug wholesalers, agreed to pay $625 million to the federal and state governments to resolve allegations that the company illegally distributed adulterated and misbranded drugs, including syringes for cancer patients.

The settlement resolves civil claims that Medical Initiatives, a purported pharmacy that AmerisourceBergen opened in Alabama, caused numerous false claims to be submitted to Medicaid for unapproved new drugs or defective and contaminated medicines, and double billed for the same drug vials, according to a statement by New York Attorney General Barbara Underwood, who disclosed the agreement (read the settlement here).

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The specialty pharmacy was also accused of illegally shipping pre-filled syringes that contained drugs for patients undergoing chemotherapy, including Aloxi, Anzemet, Kytril, Neupogen, and Procrit. Moreover, these were prepared in an unsterile environment.

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