SETTLEMENT REACHED WITH PHARMACEUTICAL COMPANY

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February 25, 2014

LITTLE ROCK – Attorney General Dustin McDaniel announced today that Arkansas, other states and the federal government have reached an agreement with Endo Pharmaceuticals to resolve allegations that the drug manufacturer engaged in unlawful marketing practices related to the pain reliever Lidoderm.

The Arkansas Medicaid Program will receive a total of $147,448.39 from the settlement with Endo Pharmaceuticals, a subsidiary of Endo Health Solutions.

“When a company circumvents the law in order to increase its profits, the victims are the people of Arkansas and its Medicaid program,” McDaniel said. “I am glad that the states and federal government were able to reach this settlement for the benefit of the Medicaid program.”

Endo is accused of illegally promoting Lidoderm for treatment of lower back pain or chronic pain, thereby causing false claims to be submitted to Medicaid between March 1999 and December 2007. The FDA had approved the drug only for treatment of pain associated with post-herpetic neuralgia, commonly known as shingles.

Under the agreement, Endo will pay $172.9 million to the states and federal government, as well as a $20 million criminal fine.

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