Specialty Pharmaceutical Company To Pay $11.4 Million To Resolve Anti-Kickback Statute And False Claims Act Allegations

On January 10, 2013, a pharmaceutical company based in San Diego, Victory Pharma, Inc., agreed to pay $11.4 Million to resolve allegations that it improperly marketed its pharmaceutical products.  It is alleged that Victory violated the federal Anti-Kickback Statute and False Claims Act by paying kickbacks to doctors who prescribe the company’s drugs.  Many of the prescriptions were for patients covered by Medicare and other federally insured health programs.  The kickbacks included tickets to sporting events, concerts, and plays; golf and ski outings; and dinners and other out-of-office events.

As part of the settlement, the whistleblower, Chad Miller, will receive $1.7 million.  The settlement was the result of collective efforts by DOJ’s Civil Division, the U.S. Attorney’s Office for the Southern District of California, the FBI, the OIG for HHS, Justice, and Labor; the U.S. Postal Service; the Veteran’s Administration; and the Office of Personal Management.

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