Alert

Jan 31, 2013

Pharmaceutical Companies in the Crosshairs: Department of Justice Targets Drug Manufacturers and Medical Device Makers for Massive Fines and Prosecution

2012 was not a good year for the pharmaceutical industry: GlaxoSmithKline -- $3 billion settlement with United States over illegal marketing of nine different prescription drugs, including Wellbutrin, Paxil, and Avandia; Abbott Laboratories -- $1.5 billion settlement for off-label marketing of Depakote; Merck -- $950 million settlement for illegal marketing of Vioxx; McKesson -- $190 million settlement for inflating prescription drug price information; Johnson and Johnson -- $158 million settlement for off-label marketing of Risperdal; Orthofix International -- $43 million settlement for illegal marketing of a bond growth stimulation device and illegal kickbacks; Blackstone Medical -- $32 million settlement for illegal marketing of a bond growth stimulation device and illegal kickbacks.

The above settlements arose out of investigations for violations of the Federal False Claims Act (FCA). But the government is also pursuing cases involving violations of the Foreign Corrupt Practices Act (FCPA), and it may be the FCPA that poses the greatest threat to the pharmaceutical industry going forward, for example...

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Please contact any of the following Roetzel attorneys for further information:

Brian E. Dickerson
239.649.2702 | [email protected]

Donald S. Scherzer
216.615.7418 | [email protected]

J. Spencer Clark
239.213.3868 | [email protected]

Amanda Knapp
216.615.7416 | [email protected]