Alpharma Inc., now a wholly owned subsidiary of King Pharmaceuticals based in Bristol, Tennessee, agreed last week to pay $42.5 million to settle allegations that it violated the False Claims Act and paid kickbacks to health care providers to prescribe its pain killer drug, Kadian. The government had alleged that between January 1, 2000 and December 29, 2008, Alpharma engaged in the illegal promotion of Kadian, and that they had made misrepresentations about the safety and efficacy of the drug. The case was the result of a whistleblower claim from, Debra Parks, made in 2006 under the qui tam provision of the False Claims Act. Under the civil settlement announced today, Parks will receive $5.33 million.
Read the story here and here.
Read the DOJ announcement here.
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