Madigan: Victory Pharma to pay nearly $140,000 for defrauding Illinois Medicaid program

[February 13, 2013]  CHICAGO -- Attorney General Lisa Madigan joined her state counterparts across the country and the federal government this week in announcing a $12 million settlement with the pharmaceutical company Victory Pharma Inc. The settlement resolves allegations that Victory Pharma illegally promoted four of its drugs in an effort to defraud state and federally funded health care programs, including almost $140,000 in false claims submitted to the Illinois Medicaid program.

The states and the federal government alleged that Victory Pharma offered kickbacks to medical professionals who encouraged Medicaid patients to use the drugs Naprelan, Xodol, Fexmid and Dolgic.

"My office will take action against pharmaceutical companies that use illegal sales tactics and profit from pushing their drugs on patients in the Illinois Medicaid program," Madigan said.

Under the settlement, Victory Pharma will pay $12 million in civil damages and penalties to compensate Medicaid, Medicare and various federal health care programs for harm suffered as a result of its conduct. Victory Pharma also pleaded guilty to federal criminal charges related to the kickback allegations. The company must enter into a corporate integrity agreement with the U.S. Department of Health and Human Services' Office of the Inspector General, which will closely monitor the company's future marketing and sales practices.

This settlement is based on a whistle-blower action brought by a private individual pursuant to state and federal false claims acts and filed in the U.S. District Court for the Southern District of California.

[Text from file received from the office of Illinois Attorney General Lisa Madigan]