Pharmacy Pays Doctors To Write Prescriptions

Pharmacy Pays Doctors To Write Prescriptions

Posted By The Maher Law Firm || 28-Dec-2012

Victor Pharmacy

Victory Pharma Inc. - a San Diego based pharmacy, agreed on Thursday to pay a $11.4 million dollar settlement to resolve federal civil and criminal liability claims it paid kickbacks to doctors to induce them to write prescriptions for Victory's products, including prescriptions for patients covered by Medicare.

The prescription medications - Naprelan - a non-steroidal anti-inflammatory or NSAID, Xodol - a hydrocodone semi-synthetic opioid, Fexmid - a muscle relaxant, and Dolgic - an acetaminophen pain reliever, were alleged to have been illegally promoted by Victory Pharma Inc by kickbacks to doctors to induce them to write prescriptions.

In statements, the kickbacks included tickets to professional and collegiate sporting events, tickets to concerts and plays, dinners at expensive restaurants and spas, golf and ski outings.

According to the Justice Department, Victory entered into a deferred prosecution agreement, agreeing to pay a $1.4 million dollar in criminal forfeiture to resolve federal Anti-Kickback Statute and $9.94 million dollars to resolve False Claims Act allegations. The allegations, part of a "whistle-blower" lawsuit filed by Chad Miller, a former sales representative for Victory, will receive $1.7 million dollars from Victory's False Claims Act payment for his role.

"Kickback schemes undermine the integrity of medical decisions, subvert the health marketplace and waste taxpayer dollars. We will continue to hold accountable those who refuse to play by the rules and provide illegal incentives to influence the decision making of health care providers." said Stuart Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Justice Department.

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