NEW YORK (Legal Newsline) - New York Attorney General Eric Schneiderman announced a $6.2 million settlement on Friday with a medical imaging company and its former parent company for allegedly evading city and state taxes.
Between 2002 and 2006, Lantheus Medical Imaging Inc. and Bristol-Myers Squibb, the former parent company of Lantheus, allegedly failed to pay applicable New York state business franchise taxes, Metropolitan Transportation Authority surcharges and New York City corporation taxes. During that time, Lantheus allegedly derived revenue from selling medical imaging products to clinics, hospitals and other facilities and from its servicing and training activities.
Lantheus allegedly knowingly failed to pay more than $2.2 million in state and city taxes.
"Lantheus' failure to pay these taxes was indefensible," Schneiderman said. "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."
The settlement is the result of a whistleblower complaint filed in May 2012 in State Supreme Court in Manhattan. The action was filed under the New York False Claims Act, which requires liable individuals or businesses to pay triple damages, penalties and attorney fees.
Under the terms of the settlement, the city of New York will receive $693,143.04 and the whistleblower will receive $1,137,814.80.
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