Mallinckrodt Pays $3.5M To Settle Kickback, FCA Claims

Law360, Washington (July 18, 2013, 5:52 PM EDT) -- Pharmaceutical manufacturer Mallinckrodt LLC agreed to pay $3.5 million over whistleblower allegations that it violated the False Claims Act by improperly paying doctors kickbacks for several Mallinckrodt products and subsequently submitting false claims to Medicare and Medicaid, the U.S. Department of Justice announced Thursday.

The DOJ alleged Mallinckrodt paid physician consultants to participate in speaker programs and clinical trials in order to influence them to write prescriptions for Restoril, Magnacet, Tofranil-PM and their generic counterparts. Restoril is an insomnia treatment, Magnacet is a pain reliever and Tofranil is an antidepressant.

That program "tainted" various Medicare and Medicaid payment claims submissions from...

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