Ten Largest False Claims Act Settlements By Pharmaceutical Companies

Pharmaceutical companies have been a part of some of the largest settlements in the history of the FCA.  Below is a list of the ten largest FCA settlements by members of the pharmaceutucal industry:

1. GlaxoSmithKline – $2 billion (2012)

GSK paid two billion dollars to resolve allegations that the company caused false claims to be submitted to the government by (1) promoting the drugs, Paxil, Wellbutrin, Advair, Lamictal, and Zofran for non-FDA-approved (off-label) uses, (2) paying kickbacks to physicians to prescribe those drugs, (3) making false statements concerning the safety of the drug, Advandia, and (4) reporting false drug best prices, which resulted in underpaid rebates under the Medicaid Drug Rebate Program.

2. Johnson & Johnson – $1.72 billion (2013)

Johnson & Johnson settled to resolve allegations that the company promoted drugs for off-label uses and paid kickbacks to physicians, thereby causing the submission of false claims to the government.

3. Pfizer – $1 billion (2009)

Pfizer paid the above amount to settle allegations that it caused the submission of false claims to the government by promoting drugs for off-label uses and paying kickbacks to physicians to prescribe those illegally promoted drugs, as well as other drugs.

4. Abbott Laboratories – $800 million (2012)

Abbott Labs settled to resolve allegations that the company promoted the drug, Depakote, for off-label uses, causing false claims for payment to be submitted to government health care programs.

5. Merck & Company – $650 million (2008)

Merck settled to resolve allegations that the company reported false best prices, and thereby failed to pay proper rebates to Medicaid, and that the company paid kickbacks to physicians to induce those physicians to prescribe Merck’s products.

6. Merck Sharp & Dohme – $628 million (2011)

Merck Sharp & Dohme paid the above amount to settle allegations that the company marketed Vioxx for off-label uses and made false statements about Vioxx’s safety, resulting in violations of the False Claims Act.

7. Amgen – $612 million (2012)

Amgen settled to resolve allegations that the company caused false claims to be submitted to government healthcare programs by its (1) promotion of drugs for off-label uses and doses, (2) offering of kickbacks to physicians to use its products, and (3) reported of false prices for several of the company’s drugs.

8. GlaxoSmithKline – $600 million (2010)

GSK settled to resolve allegations that the company caused false claims to be submitted to government health care programs through its subsidiary’s manufacture of adulterated drugs.

9. Serono – $567 million (2005)

The Swiss company paid the above amount to resolve allegations that the company marketed a drug for off-label uses and paid kickbacks to physicians to prescribe the drug, resulting in violations of the False Claims Act.

10. TAP Pharmaceuticals – $559.4 million (2001)

TAP settled to resolve allegations that the company violated the False Claims Act through its false reporting of drug prices and paying kickbacks to physicians.

 

If you have a Pharmaceutical Fraud Case, please contact the Rabon Law Firm for a free consultation.

 

 

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