published Thursday, July 18th, 2013

Feds fine St. Louis drug maker $3.5 million

SAN FRANCISCO — A St. Louis-based drug maker is paying $3.5 million to settle a federal lawsuit that it illegally paid doctors to prescribe out-of-date antidepressants and sleep aids to Medicare and Medicaid patients.

The U.S. attorney’s office in San Francisco announced the settlement Thursday. Prosecutors say a former employee of drug maker Mallinckrodt LLC initially filed the lawsuit in 2008 under the federal False Claims Act.

The employee alleged the company paid doctors consulting fees and other inducements for prescribing several of its drugs.

According to the lawsuit, the drugs were “third rate” treatments that would not typically have been prescribed without the inducements. The government joined the lawsuit because Medicare and Medicaid paid for some of the prescriptions.

A Mallinckrodt spokesman says the company is glad the matter is resolved.

about Associated Press...

The Associated Press

Other National Articles

videos »         

photos »         

e-edition »

advertisement
advertisement

Find a Business

400 East 11th St., Chattanooga, TN 37403
General Information (423) 756-6900
Copyright, Permissions, Terms & Conditions, Privacy Policy, Ethics policy - Copyright ©2014, Chattanooga Publishing Company, Inc. All rights reserved.
This document may not be reprinted without the express written permission of Chattanooga Publishing Company, Inc.