Settlement Reached to Resolve Kickback Allegations Against a Pharmaceutical Company
November 3, 2015
LITTLE ROCK – Arkansas Attorney General Leslie Rutledge today announced that Arkansas, along with all 50 States, the District of Columbia, the National Association of Medicaid Fraud Control Units and the federal government have reached a $102 million settlement with Warner Chilcott PLC, a pharmaceutical company based in Ireland with U.S. headquarters in New Jersey.
The settlement resolves civil and criminal allegations that the company paid kickbacks to induce prescriptions of nine of its drugs and falsified health program coverage paperwork to ensure federal and State reimbursement, a violation of the False Claims Act.
“Arkansas will receive $129,923.34 from the multi-state settlement reached with Warner Chilcott,” said Attorney General Rutledge. “The actions of this pharmaceutical company put patients at risk by encouraging doctors to prescribe their medications, in exchange for promotional speaking fees, honoraria and meals.”
Warner Chilcott violated the False Claims Act by paying kickbacks to doctors for prescribing Actonel, Asacol, Asacol HD, Atelvia, Doryx, Enablex, Estrace, Loestrin 24 Fe or Lo Loestrin.
The total Medicaid portion of the settlement is $10.6 million. Warner Chilcott will be permanently excluded from the Medicaid, Medicare and other federal health care programs, and the company has pleaded guilty to one felony count that alleged health care fraud.