The following is a list of the 20 largest settlements reached between the United States Department of Justice and pharmaceutical companies from 2001 to 2013, ordered by the size of the total settlement. The settlement amount includes both the civil (False Claims Act) settlement and criminal fine. Glaxo's $3 billion settlement included the largest civil False Claims Act settlement on record, and Pfizer’s $2.3 billion ($3.5 billion in 2022) settlement including a record-breaking $1.3 billion criminal fine. Legal claims against the pharmaceutical industry have varied widely over the past two decades, including Medicare and Medicaid fraud, off-label promotion, and inadequate manufacturing practices. With respect to off-label promotion, specifically, a federal court recognized off-label promotion as a violation of the False Claims Act for the first time in Franklin v. Parke-Davis, leading to a $430 million settlement.
Year | Company | Settlement | Violation(s) | Product(s) | Laws violated (if applicable) |
---|---|---|---|---|---|
2012 | GlaxoSmithKline | $3 billion ($1B criminal, $2B civil) | Criminal: Off-label promotion, failure to disclose safety data. Civil: paying kickbacks to physicians, making false and misleading statements concerning the safety of Avandia, reporting false best prices and underpaying rebates owed under the Medicaid Drug Rebate Program | Avandia (not providing safety data), Wellbutrin, Paxil (promotion of paediatric use), Advair, Lamictal, Zofran, Imitrex, Lotronex, Flovent, Valtrex | False Claims Act, FDCA |
2009 | Pfizer | $2.3 billion | Off-label promotion, kickbacks | Bextra, Geodon, Zyvox, Lyrica | False Claims Act, FDCA |
2013 | Johnson & Johnson | $2.2 billion | Off-label promotion, kickbacks | Risperdal, Invega, Nesiritide | False Claims Act, FDCA |
2012 | Abbott Laboratories | $1.5 billion | Off-label promotion | Depakote | False Claims Act, FDCA |
2009 | Eli Lilly | $1.4 billion | Off-label promotion | Zyprexa | False Claims Act, FDCA |
2001 | TAP Pharmaceutical Products | $875 million | Medicare fraud, kickbacks | Lupron | False Claims Act, Prescription Drug Marketing Act |
2012 | Amgen | $762 million | Off-label promotion, kickbacks | Aranesp | False Claims Act, FDCA |
2010 | GlaxoSmithKline | $750 million | Poor manufacturing practices | Kytril, Bactroban, Paxil CR, Avandamet | False Claims Act, FDCA |
2005 | Serono | $704 million | Off-label promotion, kickbacks, monopolistic practices | Serostim | False Claims Act |
2008 | Merck | $650 million | Medicare fraud, kickbacks | Zocor, Vioxx, Pepsid | False Claims Act, Medicaid Rebate Statute |
2007 | Purdue Pharma | $601 million | Off-label promotion | Oxycontin | False Claims Act |
2010 | Allergan | $600 million | Off-label promotion | Botox | False Claims Act, FDCA |
2010 | AstraZeneca | $520 million | Off-label promotion, kickbacks | Seroquel | False Claims Act |
2007 | Bristol-Myers Squibb | $515 million | Off-label promotion, kickbacks, Medicare fraud | Abilify, Serzone | False Claims Act, FDCA |
2002 | Schering-Plough | $500 million | Poor manufacturing practices | Claritin | FDA Current Good Manufacturing Practices |
2006 | Mylan | $465 million | Misclassification under the Medicaid Drug Rebate Program | EpiPen (epinephrine) | False Claims Act |
2006 | Schering-Plough | $435 million | Off-label promotion, kickbacks, Medicare fraud | Temodar, Intron A, K-Dur, Claritin RediTabs | False Claims Act, FDCA |
2004 | Pfizer | $430 million | Off-label promotion | Neurontin | False Claims Act, FDCA |
2008 | Cephalon | $425 million | Off-label promotion | Actiq, Gabitril, Provigil | False Claims Act, FDCA |
2010 | Novartis | $423 million | Off-label promotion, kickbacks | Trileptal | False Claims Act, FDCA |
2003 | AstraZeneca | $355 million | Medicare fraud | Zoladex | Prescription Drug Marketing Act |
2004 | Schering-Plough | $345 million | Medicare fraud, kickbacks | Claritin | False Claims Act, Anti-Kickback Statute |
See also
- Vaccine hesitancy
- Pharmaceutical fraud
- List of off-label promotion pharmaceutical settlements
References
- "GlaxoSmithKline to Plead Guilty and Pay $3 Billion to Resolve Fraud Allegations and Failure to Report Safety Data". justice.gov. 2 July 2012. Archived from the original on 2024-07-14. Retrieved 25 August 2012.
- "Justice Department Announces Largest Health Care Fraud Settlement in Its History". justice.gov. 2 September 2009. Retrieved 12 June 2024.
- Almashat, S et al. Rapidly Increasing Criminal and Civil Monetary Penalties Against the Pharmaceutical Industry: 1991 – 2010. Public Citizen’s Health Research Group. December 16, 2010
- Katie Thomas, Michael S. Schmidt (2 July 2012). "Glaxo Agrees to Pay $3 Billion in Fraud Settlement". The New York Times. Retrieved 25 August 2012.
- Lavoie, Denise (5 December 2007). "Drug Whistleblower Collects $24M". cbsnews.com. Retrieved 25 August 2012.
- formed in 2000 by merger of Glaxo Wellcome and SmithKline Beecham
- "Johnson & Johnson to Pay More Than $2.2 Billion to Resolve Criminal and Civil Investigations". justice.gov. 4 November 2013. Retrieved 5 March 2015.
- "Abbott Labs to Pay $1.5 Billion to Resolve Criminal & Civil Investigations of Off-label Promotion of Depakote". justice.gov. 7 May 2012. Retrieved 25 August 2012.
- "Eli Lilly and Company Agrees to Pay $1.415 Billion to Resolve Allegations of Off-label Promotion of Zyprexa". justice.gov. 15 January 2009. Retrieved 25 August 2012.
- "TAP Pharmaceutical Products Inc. and Seven Others Charged with Health Care Crimes; Company Agrees to Pay $875 Million to Settle Charges". justice.gov. 3 October 2001. Retrieved 25 August 2012.
- "Amgen Inc. Pleads Guilty to Federal Charge in Brooklyn, NY.; Pays $762 Million to Resolve Criminal Liability and False Claims Act Allegations". justice.gov. 19 December 2012. Retrieved 20 December 2012.
- "GlaxoSmithKline to Plead Guilty & Pay $750 Million to Resolve Criminal and Civil Liability Regarding Manufacturing Deficiencies at Puerto Rico Plant". justice.gov. 26 October 2010. Retrieved 25 August 2012.
- "Serono to Pay $704 Million for the Illegal Marketing of AIDS Drug". justice.gov. 17 October 2005. Archived from the original on 2 November 2013. Retrieved 25 August 2012.
- "Merck to Pay More than $650 Million to Resolve Claims of Fraudulent Price Reporting and Kickbacks". justice.gov. 7 February 2008. Retrieved 25 August 2012.
- "Office of the Deputy Attorney General" (PDF). justice.gov. 7 November 2008. Retrieved 25 August 2012.
- "Allergan Agrees to Plead Guilty and Pay $600 Million to Resolve Allegations of Off-Label Promotion of Botox®". justice.gov. 1 September 2010. Retrieved 25 August 2012.
- "Pharmaceutical Giant AstraZeneca to Pay $520 Million for Off-label Drug Marketing". justice.gov. 27 April 2010. Retrieved 25 August 2012.
- "Bristol-Myers Squibb to Pay More Than $515 Million to Resolve Allegations of Illegal Drug Marketing and Pricing". justice.gov. 28 September 2007. Retrieved 25 August 2012.
- "$500 million fine for Schering-Plough". The Philadelphia Inquirer. 18 May 2002. Archived from the original on January 1, 2014. Retrieved 25 August 2012.
- Mole, Beth (October 7, 2016). "For ripping off Medicaid, EpiPen maker Mylan pays Feds $465 million". Ars Technica. Retrieved December 3, 2016.
- "Schering to Pay $435 Million for the Improper Marketing of Drugs and Medicaid Fraud" (PDF). justice.gov. 29 August 2006. Retrieved 25 August 2012.
- "Warner-Lambert to Pay $430 Million to Resolve Criminal & Civil Health Care Liability Relating to Off-Label Promotion". usdoj.gov. United States Department of Justice. 13 May 2004. Retrieved 30 July 2017.
- "Biopharmaceutical Company, Cephalon, to Pay $425 Million & Enter Plea to Resolve Allegations of Off-Label Marketing". U.S. Department of Justice. 29 September 2008. Retrieved 30 July 2017.
- "Novartis Pharmaceuticals Corporation, a US subsidiary of Novartis AG, reaches settlement agreement with US Attorney's Office". novartis.com. 30 September 2010. Archived from the original on 17 October 2013. Retrieved 25 August 2012.
- Petersen, Melody (21 June 2003). "AstraZeneca Pleads Guilty In Cancer Medicine Scheme". nytimes.com. Retrieved 25 August 2012.
- "Schering-Plough to Pay $345 Million to Resolve Criminal and Civil Liabilities for Illegal Marketing of Claritin". justice.gov. 30 July 2004. Retrieved 25 August 2012.
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The following is a list of the 20 largest settlements reached between the United States Department of Justice and pharmaceutical companies from 2001 to 2013 ordered by the size of the total settlement The settlement amount includes both the civil False Claims Act settlement and criminal fine Glaxo s 3 billion settlement included the largest civil False Claims Act settlement on record and Pfizer s 2 3 billion 3 5 billion in 2022 settlement including a record breaking 1 3 billion criminal fine Legal claims against the pharmaceutical industry have varied widely over the past two decades including Medicare and Medicaid fraud off label promotion and inadequate manufacturing practices With respect to off label promotion specifically a federal court recognized off label promotion as a violation of the False Claims Act for the first time in Franklin v Parke Davis leading to a 430 million settlement Year Company Settlement Violation s Product s Laws violated if applicable 2012 GlaxoSmithKline 3 billion 1B criminal 2B civil Criminal Off label promotion failure to disclose safety data Civil paying kickbacks to physicians making false and misleading statements concerning the safety of Avandia reporting false best prices and underpaying rebates owed under the Medicaid Drug Rebate Program Avandia not providing safety data Wellbutrin Paxil promotion of paediatric use Advair Lamictal Zofran Imitrex Lotronex Flovent Valtrex False Claims Act FDCA 2009 Pfizer 2 3 billion Off label promotion kickbacks Bextra Geodon Zyvox Lyrica False Claims Act FDCA 2013 Johnson amp Johnson 2 2 billion Off label promotion kickbacks Risperdal Invega Nesiritide False Claims Act FDCA 2012 Abbott Laboratories 1 5 billion Off label promotion Depakote False Claims Act FDCA 2009 Eli Lilly 1 4 billion Off label promotion Zyprexa False Claims Act FDCA 2001 TAP Pharmaceutical Products 875 million Medicare fraud kickbacks Lupron False Claims Act Prescription Drug Marketing Act 2012 Amgen 762 million Off label promotion kickbacks Aranesp False Claims Act FDCA 2010 GlaxoSmithKline 750 million Poor manufacturing practices Kytril Bactroban Paxil CR Avandamet False Claims Act FDCA 2005 Serono 704 million Off label promotion kickbacks monopolistic practices Serostim False Claims Act 2008 Merck 650 million Medicare fraud kickbacks Zocor Vioxx Pepsid False Claims Act Medicaid Rebate Statute 2007 Purdue Pharma 601 million Off label promotion Oxycontin False Claims Act 2010 Allergan 600 million Off label promotion Botox False Claims Act FDCA 2010 AstraZeneca 520 million Off label promotion kickbacks Seroquel False Claims Act 2007 Bristol Myers Squibb 515 million Off label promotion kickbacks Medicare fraud Abilify Serzone False Claims Act FDCA 2002 Schering Plough 500 million Poor manufacturing practices Claritin FDA Current Good Manufacturing Practices 2006 Mylan 465 million Misclassification under the Medicaid Drug Rebate Program EpiPen epinephrine False Claims Act 2006 Schering Plough 435 million Off label promotion kickbacks Medicare fraud Temodar Intron A K Dur Claritin RediTabs False Claims Act FDCA 2004 Pfizer 430 million Off label promotion Neurontin False Claims Act FDCA 2008 Cephalon 425 million Off label promotion Actiq Gabitril Provigil False Claims Act FDCA 2010 Novartis 423 million Off label promotion kickbacks Trileptal False Claims Act FDCA 2003 AstraZeneca 355 million Medicare fraud Zoladex Prescription Drug Marketing Act 2004 Schering Plough 345 million Medicare fraud kickbacks Claritin False Claims Act Anti Kickback StatuteSee alsoVaccine hesitancy Pharmaceutical fraud List of off label promotion pharmaceutical settlementsReferences GlaxoSmithKline to Plead Guilty and Pay 3 Billion to Resolve Fraud Allegations and Failure to Report Safety Data justice gov 2 July 2012 Archived from the original on 2024 07 14 Retrieved 25 August 2012 Justice Department Announces Largest Health Care Fraud Settlement in Its History justice gov 2 September 2009 Retrieved 12 June 2024 Almashat S et al Rapidly Increasing Criminal and Civil Monetary Penalties Against the Pharmaceutical Industry 1991 2010 Public Citizen s Health Research Group December 16 2010 Katie Thomas Michael S Schmidt 2 July 2012 Glaxo Agrees to Pay 3 Billion in Fraud Settlement The New York Times Retrieved 25 August 2012 Lavoie Denise 5 December 2007 Drug Whistleblower Collects 24M cbsnews com Retrieved 25 August 2012 formed in 2000 by merger of Glaxo Wellcome and SmithKline Beecham Johnson amp Johnson to Pay More Than 2 2 Billion to Resolve Criminal and Civil Investigations justice gov 4 November 2013 Retrieved 5 March 2015 Abbott Labs to Pay 1 5 Billion to Resolve Criminal amp Civil Investigations of Off label Promotion of Depakote justice gov 7 May 2012 Retrieved 25 August 2012 Eli Lilly and Company Agrees to Pay 1 415 Billion to Resolve Allegations of Off label Promotion of Zyprexa justice gov 15 January 2009 Retrieved 25 August 2012 TAP Pharmaceutical Products Inc and Seven Others Charged with Health Care Crimes Company Agrees to Pay 875 Million to Settle Charges justice gov 3 October 2001 Retrieved 25 August 2012 Amgen Inc Pleads Guilty to Federal Charge in Brooklyn NY Pays 762 Million to Resolve Criminal Liability and False Claims Act Allegations justice gov 19 December 2012 Retrieved 20 December 2012 GlaxoSmithKline to Plead Guilty amp Pay 750 Million to Resolve Criminal and Civil Liability Regarding Manufacturing Deficiencies at Puerto Rico Plant justice gov 26 October 2010 Retrieved 25 August 2012 Serono to Pay 704 Million for the Illegal Marketing of AIDS Drug justice gov 17 October 2005 Archived from the original on 2 November 2013 Retrieved 25 August 2012 Merck to Pay More than 650 Million to Resolve Claims of Fraudulent Price Reporting and Kickbacks justice gov 7 February 2008 Retrieved 25 August 2012 Office of the Deputy Attorney General PDF justice gov 7 November 2008 Retrieved 25 August 2012 Allergan Agrees to Plead Guilty and Pay 600 Million to Resolve Allegations of Off Label Promotion of Botox justice gov 1 September 2010 Retrieved 25 August 2012 Pharmaceutical Giant AstraZeneca to Pay 520 Million for Off label Drug Marketing justice gov 27 April 2010 Retrieved 25 August 2012 Bristol Myers Squibb to Pay More Than 515 Million to Resolve Allegations of Illegal Drug Marketing and Pricing justice gov 28 September 2007 Retrieved 25 August 2012 500 million fine for Schering Plough The Philadelphia Inquirer 18 May 2002 Archived from the original on January 1 2014 Retrieved 25 August 2012 Mole Beth October 7 2016 For ripping off Medicaid EpiPen maker Mylan pays Feds 465 million Ars Technica Retrieved December 3 2016 Schering to Pay 435 Million for the Improper Marketing of Drugs and Medicaid Fraud PDF justice gov 29 August 2006 Retrieved 25 August 2012 Warner Lambert to Pay 430 Million to Resolve Criminal amp Civil Health Care Liability Relating to Off Label Promotion usdoj gov United States Department of Justice 13 May 2004 Retrieved 30 July 2017 Biopharmaceutical Company Cephalon to Pay 425 Million amp Enter Plea to Resolve Allegations of Off Label Marketing U S Department of Justice 29 September 2008 Retrieved 30 July 2017 Novartis Pharmaceuticals Corporation a US subsidiary of Novartis AG reaches settlement agreement with US Attorney s Office novartis com 30 September 2010 Archived from the original on 17 October 2013 Retrieved 25 August 2012 Petersen Melody 21 June 2003 AstraZeneca Pleads Guilty In Cancer Medicine Scheme nytimes com Retrieved 25 August 2012 Schering Plough to Pay 345 Million to Resolve Criminal and Civil Liabilities for Illegal Marketing of Claritin justice gov 30 July 2004 Retrieved 25 August 2012