The pharmaceutical company PharMerica Corp. has settled allegations by Idaho and other states, as well as the federal government, that it conspired with Abbott Laboratories through “a number of disguised kickback arrangements” to promote the seizure drug Depakote and to promote “misbranded” Depakote.
Idaho Attorney General Lawrence Wasden announced the settlement Tuesday.
Idaho and other states alleged that from Jan. 1, 2001, through Dec. 31, 2008, the company PharMerica solicited and received illegal payments from Abbott in the form of rebate deals, in which PharMerica would provide certain promotions, grants and other financial support.
“This alleged conduct resulted in false claims to Medicaid and other federal health care programs,” Wasden’s office said Tuesday.
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PharMerica agreed to pay state and federal governments a total of $9.25 million in civil damages to compensate Medicaid, Medicare and other federal programs. As part of the settlement, Idaho will receive $7,165 in restitution and other recovery.