Drug Liability Settlements
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States Settle $44.3 Million Suit Against Pharmaceutical Manufacturer
Georgia joined several other U.S. states in a $44.3 million pharmaceutical settlement with manufacturer manufacturer EMD Serono Inc.
Bill Rankin reported in "Georgia joins $44.3 million pharmaceutical settlement" that the company submitted false or fraudulent claims about the drug Rebif to the Medicaid program.
The suit was sparked by a whistle-blower in Maryland. According to allegations, the company also offered inducements to various health care professionals in exchange for prescribing the multiple sclerosis drug. The inducements included everything from speaking engagements to educational grants.
The state of Georgia received $399,412 in the settlement.
Settlements Reached in Seroquel Cases
Pharmaceutical company AstraZeneca settled two federal investigations and two whistle-blower lawsuits over its aggressive marketing policies and off-label promotion of the drug Seroquel, which was used to treat psychiatric conditions.
"New York Times" reporter Duff Wilson noted in "AstraZeneca Pays Millions to Settle Seroquel Cases" that AstraZeneca was hit with more than 14,000 civil lawsuits over the drug. Suits alleged that patients developed diabetes and other health issues as a direct result of dubious marketing practices.
Eli Lilly Settles Case over Marketing Practices
Eli Lilly was implicated in a similar suit for the questionable tactics it used to market Zyprexa, a drug used in the treatment of mental illnesses.
In "Justice Department Beats Chest over Zyprexa Settlement," Sarah Rubenstein reported that Eli Lilly settled the case for $1.415 billion, the largest in U.S. history.
The suit alleged that the company touted side effects of the drug as beneficial to certain patients. For example, a “5 to 5” slogan promoted the sedative effects of the drug and was used to encourage nursing home doctors to administer 5 milligrams of the drug at 5 p.m. to help patients sleep. The company also allegedly assured doctors that the side effect of weight gain was good for patients who were having trouble maintaining their weight.
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