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Mallinckrodt Agrees to Pay United States and States 3,500,000 Million Dollars to Resolve False Claim Kickback Case

The National Association of Medicaid Fraud Control Units (NAMFCU) announced on July 18 that 8 states, as part of a national settlement against Mallinckrodt, has resolved allegations that Mallinckrodt violated the Federal False Claims Act, and various state false claims acts, by providing kickbacks to doctors to effectuate prescription sales of Tofranil-PM, Restoril, and Magnacet.

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ISTA PHARMACEUTICALS, INC. PAYS $15 MILLION IN SETTLEMENT OF OFF-LABEL MARKETING CLAIMS

NAMFCU announced on July 17, 2013 that the states and the federal government reached an agreement with ISTA Pharmaceuticals, Inc. (“ISTA”) to settle allegations that ISTA marketed its ophthalmic drug Xibrom® for uses that were not approved by the United States Food and Drug Administration (FDA), and paid inducements to doctors to write Xibrom® prescriptions between January 2006 and March 2011.

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RANBAXY PAYS $500 MILLION TO RESOLVE ADULTERATED DRUGS CLAIMS

The National Association of Medicaid Fraud Control Units announced on May 10, 2013 that the states and the federal government joined in a $500 million dollar settlement to resolve civil and criminal allegations that Ranbaxy, a generic pharmaceutical manufacturer based in Gurgaon, India, introduced adulterated drugs into interstate commerce.

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Par Pharmaceuticals Agrees to Pay $22.5 Million

The National Association of Medicaid Fraud Control Units announced on March 5, 2013 that the states and the federal government and reached agreement with Par Pharmaceutical Companies, Inc.

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Healthpoint, LTD

The National Association of Medicaid Fraud Control Units announced on February 21, 2013 that 46 states and the District of Columbia have reached a settlement with Texas-based pharmaceutical manufacturer Healthpoint, Ltd. and its general partner, DFB Pharmaceuticals, to resolve allegations that Healthpoint caused false claims to be submitted to the Medicaid program for an unapproved drug, Xenaderm.

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VICTORY PHARMA, INC. PAID $12 MILLION IN SETTLEMENT

The National Association of Medicaid Fraud Control Units announced on February 11, 2013 that the states and the federal government to reach agreement with Victory Pharma, Inc. (“VPI”) to settle civil and criminal allegations that VPI paid inducements to physicians for writing prescriptions for the drugs Naprelan, Xodol, Fexmid and Dolgic from January 1, 2007 to December 31, 2009.

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MERCK TO PAY MORE THAN $915 MILLION TO SETTLE VIOXX CLAIMS WITH STATES AND FEDERAL GOVERNMENT

The National Association of Medicaid Fraud Control Units announced on November 22, 2011 that 42 states and the federal government and reached agreement with Merck Sharp & Dohme Corp. (Merck) to settle civil and criminal allegations that Merck marketed its drug Vioxx for uses not approved by the United States Food and Drug Administration (FDA), misrepresented the cardiovascular safety issues relating to the drug and otherwise made false and misleading representations about Vioxx.

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ABBOTT LABORATORIES TO PAY $1.5 BILLION HEALTHCARE FRAUD SETTLEMENT

The National Association of Medicaid Fraud Control Units announced on May 4, 2012 that 45 states, the District of Columbia and the federal government reached agreement with Abbott Laboratories to settle civil and criminal allegations that Abbott Laboratories illegally marketed Depakote.

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NAMFCU ANNOUNCED SETTLEMENT WITH MAXIM HEALTH SERVICES INC.

The National Association of Medicaid Fraud Control Units announced on September 12 that 41 states and the federal government have reached a settlement with Maxim Healthcare Services, Inc. Maxim, a home health agency based in Baltimore, Maryland, provides in-home nursing and home health aide services to people with disabilities in forty-one states.

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PHARMACEUTICAL COMPANY ALLERGAN TO PAY $600 MILLION FOR OFF LABEL MARKETING OF BOTOX

On September 1, 2010 the National Association of Medicaid Fraud Control Units announced that the states and the federal government reached an agreement in principle with pharmaceutical manufacturer, Allergan, Inc., and Allergan USA, Inc. to settle allegations of improper off-label marketing of the drug Botox.

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GLAXOSMITHKLINE TO PAY $750 MILLION DOLLARS TO SETTLE ALLEGATIONS OF SELLING ADULTERATED DRUGS

The National Association of Medicaid Fraud Control Units announced on October 26, 2010, that the states and the federal government have reached an agreement in principle with the pharmaceutical manufacturer GlaxoSmithKline (GSK) to settle allegations that the company introduced adulterated drugs into interstate commerce.

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NOVARTIS TO PAY $422.5 MILLION TO SETTLE CLAIMS OF OFF-LABEL DRUG MARKETING AND KICKBACKS

The National Association of Medicaid Fraud Control Units announced on September 30, 2010 that the states and the federal government to reach an agreement in principle with Novartis Pharmaceuticals Corporation (Novartis) to settle allegations it improperly promoted Trileptal and engaged in unlawful kickback schemes to induce physicians to prescribe Trileptal, Diovan, Zelnorm, Sandostatin, Exforge and Tekturna.

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ASTRAZENECA TO PAY $520 MILLION TO SETTLE CLAIMS OF OFF-LABEL DRUG MARKETING

The National Association of Medicaid Fraud Control Units announced on April 27, 2010 that the states and the federal government have reached an agreement in principle with AstraZeneca Pharmaceuticals LP, to settle allegations it engaged in an off-label marketing campaign that improperly promoted the antipsychotic drug, Seroquel. AstraZeneca will pay the states and the federal government a total of $520 million in damages and penalties to compensate Medicaid and various federal healthcare programs for harm suffered as a result of this conduct.

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PHARMACEUTICAL COMPANY PAYS $42.5 MILLION TO RESOLVE FRAUD ALLEGATIONS

The National Association of Medicaid Fraud Control Units announced on March 16 that the states and the federal government have reached an agreement in principle with the pharmaceutical manufacturer, Alpharma Inc., to settle allegations of causing false or fraudulent claims for Kadian to be submitted to the Medicaid program.

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DENTAL MANAGEMENT COMPANY PAYS $24 MILLION TO RESOLVE FRAUD ALLEGATIONS

The National Association of Medicaid Fraud Control Units (NAMFCU) announced on January 20 that twenty-two other states and the federal government to have settled allegations against FORBA Holdings, LLC., a dental management company that provided management services to Small Smiles dental clinics nationwide.

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OMNICARE AND OTHER COMPANIES TO PAY $98 MILLION TO SETTLE ALLEGATIONS OF FRAUD

The National Association of Medicaid Fraud Control Units announced on November 4 that an agreement has been reached with Omnicare, Inc. and IVAX Pharmaceuticals, Inc. to settle allegations that the companies engaged in unlawful kickback schemes that defrauded federal and state healthcare programs.

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FOUR PHARMACEUTICAL COMPANIES AGREE TO PAY $124 MILLION FOR ALLEGED SUBMISSION OF FALSE CLAIMS TO MEDICAID

The National Association of Medicaid Fraud Control Units announced on October 19, 2009 that an agreement has been reached with four pharmaceutical companies that will pay a total of $124 million to resolve claims that they violated the federal False Claims Act by failing to pay appropriate rebates for drugs that were paid for by Medicaid.

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NAMFCU 2009 Annual Training Program

NAMFCU held its 2009 Annual Training Program in Louisville, Kentucky, hosted by the Kentucky Medicaid Fraud Control Unit, September 13 – September 17. Kentucky Attorney General Jack Conway made opening remarks and a press release prepared by his office appears below. After the Attorney General’s remarks, Assistant Attorney General Tony West, who heads the U.S. Department of Justice’s Civil Division, gave the keynote address on federal-state cooperation in health care fraud cases. His speech is linked to the right of the press release.

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Remarks of Assistant Attorney General Tony West

Below is the speech made by Assistant Attorney General Tony West at the NAMFCU 2009 Annual Training Program in Louisville, Kentucky.

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Pfizer Inc to Pay $2.3 Billion in Historic Settlement

The National Association of Medicaid Fraud Control Units announced on September 2, 2009 that an agreement has been reached with Pfizer Inc to settle civil and criminal allegations that Pfizer and its subsidiaries paid kickbacks and engaged in off-labeling marketing campaigns that improperly promoted numerous drugs that Pfizer manufactures. This is the largest settlement in history in a health care fraud matter. Pfizer will pay the states and the federal government a total of $1 billion in civil damages and penalties to compensate Medicaid, Medicare, and various federal healthcare programs for harm suffered as a result of its conduct.

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