Madigan: Victory Pharma to pay nearly
$140,000 for defrauding Illinois Medicaid program
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[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.
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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
[Text from file received from the office
Illinois Attorney General Lisa