Lantheus Medical Imaging signed a settlement with the office of New York Attorney General Eric Schneiderman, agreeing to pay $6.2 million to settle allegations that the company and former parent Bristol-Myers Squibb schemed to avoid paying sales taxes.
The lawsuit, filed by a former tax services provider turned whistleblower, accused Massachusetts-based Lantheus of knowingly dodged years’ worth of taxes on New York sales of its products, as well as applicable New York State business franchise taxes, New York City corporation taxes and MTA surcharges from 2002 to 2006. Lantheus was known as Bristol-Myers Squibb Medical Imaging at the time.
The investigation turned up some $2.2 million in missing taxes, according to the Attorney General’s office. Whistleblower Nicholas Moore received a $1.1 million reward for coming forward.
"Lantheus’ failure to pay these taxes was indefensible," Schneiderman said in prepared remarks. "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."