Lantheus Medical Imaging implicated in $6.2M tax settlement

The office of the New York attorney general, Eric T. Scheiderman, released a statement earlier this month naming Lantheus Medical Imaging and Bristol-Myers Squib in a $6.2 million settlement for failing to pay corporate income taxes in New York.

The so-called whistleblower case involved non-payment of both New York state and city taxes on millions of dollars of medical imaging sales and services rendered in hospitals and other imaging facilities.

Schneiderman had this to say in the statement: "Lantheus’ failure to pay these taxes was indefensible. It’s simple--corporations doing business in New York are obligated to pay taxes on their earnings, and those companies that fail to do so will be held accountable. This resolution makes a huge difference for hardworking New Yorkers who pay their taxes and play by the rules."

Details of the case, opened in May 2012, involves alleged failure to pay New York City corporation taxes, state business franchise taxes and MTA surcharges in the period from 2002 until 2006 during a period when Lantheus was still considered Bristol-Myers Squibb Medical Imaging. An investigation by the attorney general’s office led to the conclusion that Lantheus was involved in $2.2 million of unpaid taxes and knowingly failed to pay them.

“The claims at issue arose during the period from Jan. 1, 2002, through Dec. 31, 2006, which predated Avista's purchase of Bristol-Myers Squib's medical imaging business (now Lantheus) on January 8, 2008,” Lantheus president and CEO Jeff Bailey told Molecular Imaging. “In connection with the acquisition, Bristol-Myers Squib had agreed to indemnify Lantheus for certain liabilities relating to the period prior to the acquisition, including all payments, penalties and expenses arising from this matter. Lantheus entered into settlement agreements, which require Bristol-Myers Squib to pay the $6.2 million. Neither Bristol-Myers Squib nor Lantheus admits any liability in the matter.”

The case was filed under the New York False Claims Act, which provides possible recovery of up to 30 percent of any money recovered for informants once the money is recovered by the government. The whistleblower involved in the case is set to receive $1,137,814.80 from the settlement.