Rogues Gallery: DOJ Lists the Worst-Behaved Drug Companies of 2010
Congratulations, Allergan (AGN): The company paid the biggest settlement to the Department of Justice's healthcare fraud and abuse program in 2010, $600 million for the unapproved, "off-label" promotion of Botox for headaches. 2010 was a banner year for bad behavior in the drug business, according to the DOJ. There were:
- $2.5 billion in health care fraud judgments and settlements.
- 1,116 new criminal health care fraud investigations.
- 2,095 potential defendants in those cases.
- 1,787 ongoing criminal health care fraud investigations pending.
- 2,977 potential defendants in those cases.
- 488 cases with criminal charges filed.
- 931 actual defendants in those cases.
- 726 defendants convicted of health care fraud-related crimes
Here are the 16 worst-behaved drug and medical device companies in 2010, ranked by the size of the settlements or awards extracted by the DOJ:
- Allergan, $600 million, mismarketing of Botox
- AstraZeneca, $520 million, mismarketing of Seroquel
- Novartis, $422.5 million, mismarketing of Trileptal and others
- Forest Labs, $313 million, mismarketing of Lovothroid and Celexa
- Mylan/UDL Labs/AZ and Johnson & Johnson, $124 million, underpaid rebates to Medicaid
- Teva, $100 million, inflated prices
- J&J, $81 million, mismarketing of Topamax
- Novartis, $72.5 million, mismarketing of TOBI for cystic fibrosis
- Alpharma, $42.5 million, mismarketing of Kadian
- KV Pharmaceutical, $27.5 million, oversized pills
- Biovail, $24.7 million, mismarketing of Cardizem
- Boston Scientific, $22 million, kickbacks on defibrillators
- Cardinal Health and Bindley Western, $5.5 million, overcharging the DOD
- Spectranetics Corporation, $4.9 million, marketing unapproved medical devices
- Atricure, $3.7 million, mismarketing surgical devices
- Sandoz, $3.5 million, fraudulent reimbursement for nitroglycerin tablets
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- Jail Time for CEOs: Stryker's "Silly Putty" Scandal Might Put Execs in the Slammer
- InterMune CEO Faces 20 Years in Prison for Writing a Press Release
- $5B: The Cost to the Taxpayer of Drug Company Pricing Fraud