Drug company fraud and pricing chicanery are widespread, and shock the conscience.
The DoJ has announced that Pfizer will pay $785 million to settle False Claims Act violations of their subsidiary company Wyeth. Through a period from 2001 to 2006, Wyeth failed to report discounts to Medicaid that they were offering hospitals for two of their stomach acid reducing drugs, Protonix IV and Protonix Oral. This led to Medicaid overpaying for these drugs by scores millions of dollars, to the detriment of the program and taxpayers, and to hospitals routinely switching patients from a prescribed drug to another similar drug, sometime to the detriment of patient health.
This Week in Fraud is a peek into the world of whistleblowing and incentivized integrity programs. Each week we highlight important case settlements, industry developments, and general points of interest. Take a moment and see what is happening this week in fraud.
Pfizer's Wyeth subsidiary has said it has an “agreement in principle” with DoJ to pay $55 million to settle the criminal side of a civil False Claims Act case with potential corporate liability in the $2 billion range.