Business & Tech
Mallinckrodt Settles $3.5 million Doctor Kickback Lawsuit
The name of the game was getting physicians to write prescriptions for Mallinckrodt's drugs, according to court documents.
Hazelwood based Mallinckrodt will pay $3.5 million to settle a federal lawsuit which claims the company made improper payments to physicians and subsequently caused improper claims to be submitted to Medicare and Medicaid.
This happened between 2005 and 2010, according to the U.S. Attorney’s Office of Northern California.
There is also a settled civil suit former employees filed in 2008. That paperwork said physician consultants were paid for their participation in speaker programs, clinical trials and meetings all geared toward getting physicians to write prescriptions for Mallinckrodt’s drugs. Those brands include Restoril, Magnacet, Tofranil-PM and their generic versions, according to the U.S. Attorney’s Office.
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The U.S. Attorney’s Office said the majority of the settlement will be paid to the United States to fund various programs such as Medicare and Medicaid, according to court documents.
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