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.