Mallinckrodt to Pay $15.4 Million on False Claims Charges

Share

Mallinckrodt (formerly Questcor Pharmaceuticals) says it expects to pay $15.4 million under an agreement in principle it has reached to resolve False Claims Act allegations that it used a foundation as a conduit to pay kickbacks in connection with its drug H.P. Acthar Gel from 2010 through 2014. The Justice Department filed a complaint in a Pennsylvania federal court alleging that the company used the kickback scheme to free it to raise the price of a vial of Acthar from $50 to $32,000.

In two whistleblower suits, the government says the company used the foundation to pay illegal kickbacks in the form of copay subsidies for Acthar so it could market the drug as “free” to doctors and patients, despite significantly increasing the drug’s price.

In a statement, Mallinckrodt says its settlement agreement does not involve an admission of guilt and it believes that the Questcor action was lawful and appropriate under an HHS Inspector General advisory opinion at the time. The company says it is its policy to resolve legacy legal matters in a reasonable and manageable way when that it possible.

Read more