Pharma Fraud
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July 29, 2022
Allergan will pay up to $2.27 billion to settle allegations they deceptively marketed opioids by downplaying the risks of opioid addiction and instead touting exaggerated benefits from the drugs. Rather than encouraging alternative treatments, Allergan encouraged doctors to prescribe more opioids, and failed to maintain effective controls to prevent diversion of opioids. This settlement involves multiple states, excluding New York, which settled separately with Allergan. VA OAGJuly 26, 2022
Mallinckrodt ARD, LLC f/k/a Questcor Pharmaceuticals, Inc. will pay over $233 million over a 7-year period to settle False Claims Act violations, which occurred from January 2013 through June 2020. During this time, Mallinckrodt knowingly underpaid Medicaid rebates on its H.P. Acthar Gel. The practice was exposed by a whistleblower lawsuit originally filed in Massachusetts. Mallinckrodt paid rebates for Achtar in 2013 as if it was a “new drug” rather than one that was introduced to the market in 1952. NJ OAGJuly 26, 2022
Teva will pay $4.25 billion to resolve allegations that it promoted potent fentanyl products to non-cancer patients, deceptively marketed opioids by downplaying the addiction risks and overstating the drugs’ benefits, and failed to comply with suspicious order monitoring requirements. The final settlement is contingent on agreement on critical business practice changes and transparency requirements. CA AG, PA OAGJuly 13, 2022
Solera Specialty Pharmacy and its CEO, Nicholas Saraniti, has agreed to pay $1.31 million and enter into a three-year integrity agreement to resolve allegations of defrauding Medicare. Solera allegedly submitted fraudulent claims for Evzio—a high-priced version of naloxone, which reverses opioid overdoses—based on prior authorization requests that contained false clinical information, that were not actually approved by physicians, and that improperly listed Solera’s contact information as if it were the physician’s. In connection with a criminal information, Solera has also entered into a deferred prosecution agreement. The whistleblower in this case, a former employee of Evzio manufacturer kaléo Inc. named Rebecca Socol, will receive a $262,000 share of the settlement. DOJA recent case could undermine the rules that have been protecting taxpayer money from fraud since the time of Lincoln
