Philly Leader

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that Avantor, Inc., based in Radnor, PA, has agreed to pay a total of $5.325 million to resolve multiple alleged violations of federal law.

False Claims Act Resolution

Avantor has agreed to pay $5 million to resolve allegations that one of its subsidiaries, VWR International, LLC (VWR), violated the False Claims Act by fraudulently overcharging federal agencies for goods purchased between 2008 and 2017. Avantor acquired VWR in 2017.

VWR is a global distributor of scientific and technical laboratory supplies. The company entered into procurement contracts with U.S. agencies under terms that required it to offer or provide federal government purchasers with prices equal to or better than those offered to private-sector customers.

The United States’ allegations stem from four government contracts VWR entered into with various agencies: two Multiple Award Schedule Contracts with the U.S. General Services Administration (GSA) in 1995 and 2015; a 2001 Blanket Purchase Agreement with the National Institutes of Health (NIH); and a 2005 contract with the U.S. Department of Veterans Affairs (VA).

The United States alleged that VWR violated the False Claims Act by failing to offer Most Favored Customer Pricing, increasing prices for federal purchasers without corresponding increases for private customers, and failing to report price changes or make refunds as required.

“Contractors are expected to understand and carefully comply with the requirements of federal contracts,” said U.S. Attorney Romero. “This settlement under the False Claims Act demonstrates that the federal government will hold accountable contractors that overcharge agencies.”

“GSA’s Office of the Inspector General will continue to investigate any allegations of GSA contractors overcharging federal agencies at the expense of American taxpayers,” said GSA Acting Inspector General Robert Erickson.

The False Claims Act Settlement also resolves a lawsuit originally brought by Adrian G. Scioli, a former VWR employee, under whistleblower provisions of the False Claims Act. Scioli will receive approximately $1,100,000 from the settlement.

DEA Resolution

Additionally, Avantor has agreed to pay $325,000 to resolve allegations related to compliance failures between 2013 and 2023 concerning listed chemicals regulated by the Drug Enforcement Administration (DEA). The company also entered into an administrative agreement imposing heightened accountability obligations.

Certain chemicals can be used in manufacturing controlled substances and are categorized as List I or List II chemicals by DEA regulations. Companies handling these chemicals must adhere strictly to reporting and documentation requirements.

The DEA conducted inspections at several Avantor facilities where it identified various compliance failures including improper documentation and incorrect registration numbers for transactions involving listed chemicals.

Avantor self-disclosed some violations regarding its exporter registration in Paris, Kentucky.

“Companies dealing in listed chemicals are held to high standards since these chemicals can be used illicitly,” said U.S. Attorney Romero.

“Listed chemicals can be used as precursors for dangerous synthetic drugs,” added Thomas Hodnett, Special Agent in Charge of DEA’s Philadelphia Field Division.

The claims resolved by these settlements are allegations only; there has been no determination of liability.

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