The U.S. Department of Justice (DOJ) and other government enforcers announced a number of key settlements in the life sciences industry in October – December 2019. These settlements include:

LIFE SCIENCES INDIVIDUALS/ ENTITIES SETTLEMENT DATE RESOLUTION KEY AREAS OF ENFORCEMENT
Pharmaceutical company Dec. 3, 2019 $3 million

Deferred prosecution agreement

Restitution

  • Criminal antitrust conspiracy
  • False Claims Act
Charitable foundation Nov. 20, 2019 $4 million

Three year integrity agreement

  • False Claims Act
  • Conduit for pharmaceutical company kickbacks
Medical device company

Founder/president/CEO 

VP Business Development

Nov. 7, 2019 $5.99 million
  • False Claims Act
  • Kickbacks
  • Consulting fees, royalties, intellectual property acquisition fees
Pharmaceutical supplier Nov. 7, 2019 $22.05 million
  • False Claims Act
  • False and inflated AWP
  • Consulting agreement kickbacks
  • Illegal waiver  of copays
Two charitable foundations Oct. 25, 2019 $4 million

$2 million

Three-year integrity agreements

  • False Claims Act
  • Conduit for pharmaceutical company kickbacks
Genetic testing company

3 principals

Oct. 9, 2019 $42.6 million

Exclusion

  • False Claims Act
  • Kickbacks
  • Medically unnecessary testing

 

These settlements demonstrate the continued importance for life sciences companies to monitor industry developments and determine ways in which to improve their corporate compliance programs.

Posted by Sarah K. diFrancesca