Pharma Distributor to Pay $765K to Settle Whistleblower Customs Case Filed by Anti-Abortion Group

Danco Laboratories, a New York-based pharmaceutical distributor, will pay $765,000 to settle allegations it violated the False Claims Act by failing to pay marking duties on its imports of Mifeprex, the active ingredient for the abortion pill mifepristone, that lacked country of origin markings, DOJ announced April 12.

The government said Danco failed to mark its imports with the corresponding COO from 2011 to 2019. The Life Legal Defense Foundation, an anti-abortion advocacy group, brought the claims to DOJ under the FCA's qui tam provision, entitling it to $115,000 of the settlement.

The FCA protects the public “by imposing liability not only on those who knowingly submit false claims to the United States, but also on those who knowingly avoid obligations owed to the United States,” Principal Deputy Assistant Attorney General Brian Boynton said. "This settlement demonstrates the department’s commitment to ensure that importers properly pay all amounts due under our customs laws.”