List of largest pharmaceutical settlements

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The following is a list of the 20 largest settlements reached between the United States Department of Justice and pharmaceutical companies from 1991 to 2012, ordered by the size of the total settlement. The settlement amount includes both the civil (False Claims Act) settlement and criminal fine. Glaxo's $3 billion settlement included the largest civil, False Claims Act settlement on record,[1] and Pfizer’s $2.3 billion settlement including a record-breaking $1.3 billion criminal fine.[2] Legal claims against the pharmaceutical industry have varied widely over the past two decades, including Medicare and Medicaid fraud, off-label promotion, and inadequate manufacturing practices.[3][4] With respect to off-label promotion, specifically, a federal court recognized off-label promotion as a violation of the False Claims Act for the first time in Franklin v. Parke-Davis, leading to a $430 million settlement.[5]

Company Settlement Violation(s) Year Product(s) Laws allegedly violated
(if applicable)
GlaxoSmithKline[1] $3 billion ($1B crimimal, $2B civil) Criminal: Off-label promotion, failure to disclose safety data.
Civil: paying kickbacks to physicians, making false and misleading
statements concerning the safety of Avandia, reporting false best
prices and underpaying rebates owed under the Medicaid Drug Rebate Program
2012 Avandia, Wellbutrin,
Paxil, Advair,
Lamictal, Zofran,
Imitrex, Lotronex,
Flovent, Valtrex;
False Claims Act/FDCA
Pfizer[2] $2.3 billion Off-label promotion/kickbacks 2009 Bextra/Geodon/
Zyvox/Lyrica
False Claims Act/FDCA
Abbott Laboratories[6] $1.5 billion Off-label promotion 2012 Depakote False Claims Act/FDCA
Eli Lilly[7] $1.4 billion Off-label promotion 2009 Zyprexa False Claims Act/FDCA
TAP Pharmaceutical Products[8] $875 million Medicare fraud/kickbacks 2001 Lupron False Claims Act/
Prescription Drug Marketing Act
Amgen[9] $762 million Off-label promotion/kickbacks 2012 Aranesp False Claims Act/FDCA
GlaxoSmithKline[10] $750 million Poor manufacturing practices 2010 Kytril/Bactroban/
Paxil CR/Avandamet
False Claims Act/FDCA
Serono[11] $704 million Off-label promotion/
kickbacks/monopoly practices
2005 Serostim False Claims Act
Merck[12] $650 million Medicare fraud/kickbacks 2008 Zocor/Vioxx/Pepsid False Claims Act/
Medicaid Rebate Statute
Purdue Pharma[13] $601 million Off-label promotion 2007 Oxycontin False Claims Act
Allergan[14] $600 million Off-label promotion 2010 Botox False Claims Act/FDCA
AstraZeneca[15] $520 million Off-label promotion/kickbacks 2010 Seroquel False Claims Act
Bristol-Myers Squibb[16] $515 million Off-label promotion/
kickbacks/Medicare fraud
2007 Abilify/Serzone False Claims Act/FDCA
Schering-Plough[17] $500 million Poor manufacturing practices 2002 Claritin FDA Current
Good Manufacturing Practices
Schering-Plough[18] $435 million Off-label promotion/
kickbacks/Medicare fraud
2006 Temodar/ Intron A/K-Dur/
Claritin RediTabs
False Claims Act/FDCA
Pfizer[19] $430 million Off-label promotion 2004 Neurontin False Claims Act/FDCA
Cephalon[20] $425 million Off-label promotion[21] 2008 Actiq/Gabitril/Provigil False Claims Act/FDCA
Novartis[22] $423 million Off-label promotion/kickbacks 2010 Trileptal False Claims Act/FDCA
AstraZeneca[23] $355 million Medicare fraud 2003 Zoladex Prescription Drug Marketing Act
Schering-Plough[24] $345 million Medicare fraud/kickbacks 2004 Claritin False Claims Act/
Anti-Kickback Statute

See also[edit]

References[edit]

  1. ^ a b "GlaxoSmithKline to Plead Guilty and Pay $3 Billion to Resolve Fraud Allegations and Failure to Report Safety Data". justice.gov. 2 July 2012. Retrieved 25 August 2012. 
  2. ^ a b "JUSTICE DEPARTMENT ANNOUNCES LARGEST HEALTH CARE FRAUD SETTLEMENT IN ITS HISTORY". justice.gov. 2 September 2009. Retrieved 25 August 2012. 
  3. ^ Almashat, S et al. Rapidly Increasing Criminal and Civil Monetary Penalties Against the Pharmaceutical Industry: 1991 – 2010. Public Citizen’s Health Research Group. December 16, 2010
  4. ^ Katie Thomas, Michael S. Schmidt (2 July 2012). "Glaxo Agrees to Pay $3 Billion in Fraud Settlement". The New York Times. Retrieved 25 August 2012. 
  5. ^ Lavoie, Denise (5 December 2007). "Drug Whistleblower Collects $24M". cbsnews.com. Retrieved 25 August 2012. 
  6. ^ "Abbott Labs to Pay $1.5 Billion to Resolve Criminal & Civil Investigations of Off-label Promotion of Depakote". justice.gov. 7 May 2012. Retrieved 25 August 2012. 
  7. ^ "Eli Lilly and Company Agrees to Pay $1.415 Billion to Resolve Allegations of Off-label Promotion of Zyprexa". justice.gov. 15 January 2009. Retrieved 25 August 2012. 
  8. ^ "TAP PHARMACEUTICAL PRODUCTS INC.AND SEVEN OTHERS CHARGED WITH HEALTH CARE CRIMES;COMPANY AGREES TO PAY $875 MILLION TO SETTLE CHARGES". justice.gov. 3 October 2001. Retrieved 25 August 2012. 
  9. ^ "Amgen Inc. Pleads Guilty to Federal Charge in Brooklyn, NY.; Pays $762 Million to Resolve Criminal Liability and False Claims Act Allegations". justice.gov. 19 December 2012. Retrieved 20 December 2012. 
  10. ^ "GlaxoSmithKline to Plead Guilty & Pay $750 Million to Resolve Criminal and Civil Liability Regarding Manufacturing Deficiencies at Puerto Rico Plant". justice.gov. 26 October 2010. Retrieved 25 August 2012. 
  11. ^ "SERONO TO PAY $704 MILLION FOR THE ILLEGAL MARKETING OF AIDS DRUG". justice.gov. 17 October 2005. Retrieved 25 August 2012. 
  12. ^ "Merck to Pay More than $650 Million to Resolve Claims of Fraudulent Price Reporting and Kickbacks". justice.gov. 7 February 2008. Retrieved 25 August 2012. 
  13. ^ "Office of the Deputy Attorney General". justice.gov. 7 November 2008. Retrieved 25 August 2012. 
  14. ^ "Allergan Agrees to Plead Guilty and Pay $600 Million to Resolve Allegations of Off-Label Promotion of Botox®". justice.gov. 1 September 2010. Retrieved 25 August 2012. 
  15. ^ "Pharmaceutical Giant AstraZeneca to Pay $520 Million for Off-label Drug Marketing". justice.gov. 27 April 2010. Retrieved 25 August 2012. 
  16. ^ "Bristol-Myers Squibb to Pay More Than $515 Million to Resolve Allegations of Illegal Drug Marketing and Pricing". justice.gov. 28 September 2007. Retrieved 25 August 2012. 
  17. ^ "$500 million fine for Schering-Plough". The Philadelphia Inquirer. 18 May 2002. Retrieved 25 August 2012. 
  18. ^ "SCHERING TO PAY $435 MILLION FOR THE IMPROPER MARKETING OF DRUGS AND MEDICAID FRAUD". justice.gov. 29 August 2006. Retrieved 25 August 2012. 
  19. ^ "Franklin v. Parke-Davis: First Off-Label Case Under False Claims Act". greenellp.com. Retrieved 25 August 2012. 
  20. ^ "September 29 2008". quitam-lawyer.com. 29 September 2008. Retrieved 25 August 2012. 
  21. ^ "Cephalon pays $425 million to settle whistleblower off-label marketing case", Phillips & Cohen LLP Press Release, September 29, 2008.
  22. ^ "Novartis Pharmaceuticals Corporation, a US subsidiary of Novartis AG, reaches settlement agreement with US Attorney's Office". novartis.com. 30 September 2010. Retrieved 25 August 2012. 
  23. ^ Petersen, Melody (21 June 2003). "AstraZeneca Pleads Guilty In Cancer Medicine Scheme". nytimes.com. Retrieved 25 August 2012. 
  24. ^ "SCHERING-PLOUGH TO PAY $345 MILLION TO RESOLVE CRIMINAL AND CIVIL LIABILITIES FOR ILLEGAL MARKETING OF CLARITIN". justice.gov. 30 July 2004. Retrieved 25 August 2012.