PharmaLogic Holdings Corporation, a radiopharmaceutical company headquartered in the State of Florida, has agreed to pay $350,000 to resolve allegations that it violated the False Claims Act. Nine of the corporation’s subsidiaries are accused of violating the False Claims Act by knowingly filing to receive small-entity status to obtain a reduced US Nuclear Regulatory Commission (NRC) annual fee. The NRC, which regulates and licenses civilian use of radioactive materials, charges an annual fee to entities that grant licenses to handle, store, or possess radioactive materials. Entities that qualify as a small entity under 10 C.F.R. § 171.16(c) can obtain a reduced annual fee. The entity obtains the fee reduction by filing an NRC Form 526, Certification of Small Entity Status for the Purposes of Annual Fees Imposed under 10 CFR Part 171. Beginning around March 31, 2015, thru December 31, 2023, nine entities acquired by PharmaLogic Holdings Corporation filed NRC 526 forms. Through these filings, each entity certified its small-entity status entitling them to a reduced NRC annual fee. Under false pretenses, the NRC certified the entities and reduced their annual fees. However, the entities exceeded the size limits to qualify for reduced annual fees.
