Forest Pharmaceuticals, based in St. Louis, has agreed to pay more than $313 million to settle allegations of paying illegal kickbacks in the form of expensive meals, entertainment and cash payments disguised as grants or consulting fees to physicians prescribing its anti-depressant drugs Celexa and Lexapro, according to a Business Courier report.
The pharmaceutical company's payment will also settle allegations that it distributed Levothroid, used to treat hypothyroidism, without FDA approval and illegally marketed drug Celexa for unapproved treatment of children and adolescents, according to the report.
Forest Pharmaceuticals has also agreed to settle pending False Claim allegations that false claims were submitted to federal healthcare programs for Levothroid, Celexa and Lexapro, according to the report.
The FDA sent a letter in 2003 to Forest Pharmaceuticals, warning the company to cease distribution of the unapproved Levothroid after the company decided not to comply with the FDA's distribution phase-down plan. After the letter was received, Forest Pharmaceuticals continued to work its St. Louis distribution center overtime until 1 a.m. to continue shipping as much of Levothroid as possible, according to the report.
Read the Business Courier report about the Forest Pharmaceutical settlement.
Read other coverage about settlements in healthcare fraud:
- Massachusett's Clinical Science Laboratory to Pay $525K to Settle Medicaid Fraud Allegations
- Santa Monica's Saint John's Health Center to Pay $5.25M Settlement in Fraud Case
- One of Nation's Largest Diagnostic Imaging Services to Pay $1.2M to Settle Medicaid Fraud Allegations
The pharmaceutical company's payment will also settle allegations that it distributed Levothroid, used to treat hypothyroidism, without FDA approval and illegally marketed drug Celexa for unapproved treatment of children and adolescents, according to the report.
Forest Pharmaceuticals has also agreed to settle pending False Claim allegations that false claims were submitted to federal healthcare programs for Levothroid, Celexa and Lexapro, according to the report.
The FDA sent a letter in 2003 to Forest Pharmaceuticals, warning the company to cease distribution of the unapproved Levothroid after the company decided not to comply with the FDA's distribution phase-down plan. After the letter was received, Forest Pharmaceuticals continued to work its St. Louis distribution center overtime until 1 a.m. to continue shipping as much of Levothroid as possible, according to the report.
Read the Business Courier report about the Forest Pharmaceutical settlement.
Read other coverage about settlements in healthcare fraud:
- Massachusett's Clinical Science Laboratory to Pay $525K to Settle Medicaid Fraud Allegations
- Santa Monica's Saint John's Health Center to Pay $5.25M Settlement in Fraud Case
- One of Nation's Largest Diagnostic Imaging Services to Pay $1.2M to Settle Medicaid Fraud Allegations