Drug manufacturer ordered to pay $125 million for fraud

Nicholas Leider | | Health Exec | Management

A federal judge in Boston ordered Warner Chilcott to pay $125 million to resolve criminal and civil claims related to healthcare fraud. The sentenced was delivered April 15, six months after the former pharmaceutical company pleaded guilty in connection to illegally marketing its drugs, including Actonel, Asacol and Enablex.

Between 2009 and 2013, Warner Chilcott employees provided payments and complimentary meals to doctors to encourage them to prescribe the company’s drugs. The company was purchased by Actavis PLC in 2013 and renamed Allergan Inc.

W. Carl Reichel, former Warner Chilcott president, was indicted in October 2015 on charges of conspiring to pay kickbacks to doctors. He denies the allegations.

""
Nicholas Leider, Managing Editor

Nicholas joined TriMed in 2016 as the managing editor of the Chicago office. After receiving his master’s from Roosevelt University, he worked in various writing/editing roles for magazines ranging in topic from billiards to metallurgy. Currently on Chicago’s north side, Nicholas keeps busy by running, reading and talking to his two cats.

Related Content

Asante Medical facing $488M in lawsuits after fentanyl diversion linked to 16 deaths
FDA issues Class I alert on Philips ventilators after 4 injuries
Trump selects Emmy-winning TV personality Dr. Oz to head CMS
FDA issues Class I recall of infusion pump batteries due to risk of burns
Ransomware group deploys ticking clock to threaten Georgia hospital
Private equity transactions in healthcare down 15% since 2023, report finds

Around the web

Cardiovascular Business
Q&A: MedAxiom CEO explores key trends in cardiologist, cardiovascular surgeon compensation

Compensation for heart specialists continues to climb. What does this say about cardiology as a whole? Could private equity's rising influence bring about change? We spoke to MedAxiom CEO Jerry Blackwell, MD, MBA, a veteran cardiologist himself, to learn more.

Cardiovascular Business
Payment cuts and beyond: Key takeaways for cardiologists from the 2025 Medicare Physician Fee Schedule

The American College of Cardiology has shared its perspective on new CMS payment policies, highlighting revenue concerns while providing key details for cardiologists and other cardiology professionals. 

AI in Healthcare
A modest proposal to rally AI regulators around a simple game plan

As debate simmers over how best to regulate AI, experts continue to offer guidance on where to start, how to proceed and what to emphasize. A new resource models its recommendations on what its authors call the “SETO Loop.”