Warner Chilcott agreed to pay $125 million to settle allegations that the company paid kickbacks to doctors under the guise of medical education events and speaker fees.  The company will also plead guilty to the conduct set forth in the information, which alleges that:

Warner Chilcott employees, at the direction of company management, provided payments, meals and other remuneration associated with so-called “Medical Education Events,” which included dinners, lunches and receptions.  These events, which were often held at expensive restaurants, often contained minimal or no educational component and were instead used to pay prescribing physicians in an attempt to gain a “competitive advantage” over other companies.  Warner Chilcott also enlisted high-prescribing physicians as “speakers” for the company.  In fact, the “speakers” often did not actually speak about any clinical or scientific topics, and, instead, the payments were primarily intended to induce prescriptions.  For instance, Warner Chilcott informed “speakers” who were not prescribing at a high volume that they would not be paid for subsequent events unless their prescribing habits increased.

The criminal information also alleged that the company falsified medical justifications for prior authorizations required by insurance companies and provided unsubstantiated information about its drugs to medical professionals.

Several Warner Chilcott employees have been charged with or pled guilty conspiracy to commit healthcare fraud or criminal HIPAA violations.  Earlier today, the former president of the company, W. Carl Reichel, was arrested on conspiracy claims related to the alleged kickbacks.

Read the DOJ press release, Warner Chilcott Agrees to Plead Guilty to Felony Health Care Fraud Scheme and Pay $125 Million to Resolve Criminal Liability and False Claims Act Allegations

Read the Boston USAO press release, Warner Chilcott Agrees to Plead Guilty to Health Care Fraud Scheme and Pay $125 Million; Former President Arrested Today in Boston