Life Sciences

Pharmaceutical settlements help government recover $2.35B

Pharma Compliance Alert, December 10, 2008

During fiscal year (FY) 2008, government enforcement efforts led to 455 criminal actions and 337 civil actions against individuals or entities that engaged in healthcare-related fraud, according to the OIG’s Semiannual Report to Congress.

The government recovered $2.35 billion in HHS investigative receivables, including civil and administrative settlements or civil judgments related to Medicare, Medicaid, and other federal healthcare programs. Cephalon agreed to a $425 million settlement to resolve off-label marketing claims and Merck entered into a $399 million settlement to resolve its False Claims Act liability in connection with certain discounting, pricing, and marketing practices associated with some of its drug products.

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