CHICAGO (Legal Newsline) - Illinois Attorney General Lisa Madigan announced a $12 million multi-state and federal settlement Monday with Victory Pharma Inc., a pharmaceutical company that allegedly engaged in the fraudulent promotion of four of its drugs.
Victory Pharma allegedly promoted four of its drugs illegally in an attempt to defraud state and federally funded health care programs. The company allegedly made close to $140,000 in false claims to the Illinois Medicaid program.
The federal government and the states alleged that Victory Pharma offered kickbacks to medical professionals who encouraged Medicaid patients to use Dolgic, Fexmid, Xodol and Naprelan.
"My office will take action against pharmaceutical companies that use illegal sales tactics and profit from pushing their drugs on patients in the Illinois Medicaid program," Madigan said.
Under the terms of the settlement, Victory Pharma will pay $12 million in civil damages and penalties to compensate Medicare, Medicaid and other federal health care programs. The state of Illinois will receive close to $140,000 as part of the settlement.
The company also pled guilty to federal criminal charges related to the allegations of providing kickbacks.
Victory Pharma must enter into a corporate integrity agreement with the Inspector General's Office within the U.S. Department of Health and Human Services under terms of the settlement. The office will closely monitor the company's future sales and marketing practices.
The settlement is based on a whistleblower action brought by a private individual pursuant to federal and state false claims acts. The action was filed in the U.S. District Court for the Southern District of California.