PharmaLogic Holdings Corporation, a radiopharmaceutical company based in Florida, has agreed to pay $350,000 to settle allegations of violating the False Claims Act. The accusations involve nine subsidiaries of the corporation allegedly misrepresenting their status to obtain reduced annual fees from the U.S. Nuclear Regulatory Commission (NRC).

The settlement was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, along with NRC Inspector General Robert J. Feitel.

The NRC oversees and licenses civilian use of radioactive materials and imposes an annual fee on licensed entities. Companies qualifying as small entities under specific regulations can receive a reduced fee by submitting NRC Form 526, certifying their small-entity status.

Between March 31, 2015, and December 31, 2023, nine PharmaLogic subsidiaries filed these forms claiming small-entity status and received reduced fees under false pretenses. However, these entities reportedly exceeded size limits required for such reductions.

"This settlement exemplifies that the United States Attorney’s Office will hold accountable companies that claim falsely their small entity status to obtain from the government a benefit to which the companies are not entitled," stated Erek L. Barron.

U.S. Attorney Barron praised the efforts of the NRC-OIG and its Anti-Fraud Team in this investigation and acknowledged Assistant U.S. Attorney Tarra DeShields for handling the case.

Inspector General Feitel emphasized the OIG's dedication to anti-fraud initiatives: "This case demonstrates the OIG’s commitment to anti-fraud initiatives and is consistent with our office’s recent efforts to ramp up investigations on this front."

It is important to note that these claims remain allegations without any determination of liability.

For further details about the Maryland U.S. Attorney’s Office or available community resources, visit their official website.