Corporate Compliance

Pharmaceutical companies top list of FY 2010 fraud settlements

Compliance Monitor, October 27, 2010

Pharmaceutical companies made up eight of the top ten settlements related to fraud in fiscal year (FY) 2010, according to an article written by the advocacy group, Taxpayers Against Fraud (TAF).

Allergan Inc. was involved in the largest settlement ($600 million) for illegally promoting Botox for unapproved uses. Other pharmaceutical companies on the list include AtraZeneca, Novartis Pharmaceuticals, Forest Laboratories, and Teva Pharmaceuticals.

TAF estimates that government prosecutors collected $3.1 billion under the False Claims Act in FY 2010. Approximately 80% of the $3.1 billion collected came from healthcare companies, including insurers and hospitals.

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