Becton Dickinson To Pay $3.3 Million in VA Overcharge Case
WASHINGTON (AP) _ Becton Dickinson and Company Inc. will pay $3.3 million to settle allegations it overcharged the Department of Veterans Affairs for medical supplies.
The Justice Department said the company, headquartered in Franklin Lakes, N.J., failed to tell the government it had granted discounts to commercial customers higher than those it disclosed to the VA during contract negotiations.
As a result, the Justice Department said, the VA overpaid Becton Dickinson in an $11 million contract, which ended Dec. 31, 1991, for test supplies.
The VA acts on behalf of the federal government to establish prices for medical and surgical products from several suppliers at the same time. The VA requires the contractors to disclose accurate, complete and current information about prices and discounts given to commercial customers.
The settlement resolves a lawsuit originally filed in U.S. District Court in Baltimore by David Siller, an employee of Scientific Supply Inc., a former distributor of Becton Dickinson products.
Siller filed suit in 1991 on behalf of the VA under a provision of the False Claims Act that allows private whistleblowers to sue companies and individuals alleged to have submitted false claims to the federal government.
Siller will receive $561,000 of the settlement amount.