Corporate Compliance

Pharmaceutical manufacturer pays $44.3 million to resolve kickback allegations

Compliance Monitor, May 11, 2011

Pharmaceutical manufacturer Serono Laboratories Inc. will pay $44.3 million to resolve False Claims Act allegations in connection with inappropriate marketing of the drug Rebif, according to a Department of Justice press release.

Serono allegedly paid healthcare providers kickbacks to induce them to promote or prescribe Rebif, a drug used to treat relapsing forms of multiple sclerosis. Serono allegedly made payments to providers in the form of speaker training meetings and programs, as well as payments for attending consultant, marketing, and advisory board meetings, all at upscale resorts and other locations.  

The federal government and various state governments will split the proceeds from the settlement. The federal government will receive $34.6 million and the states will receive $9.7 million to settle their respective claims.

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