Abbott Laboratories reached a
settlement with the Justice Department and several states over illegal
marketing practices for its anti-seizure drug Depakote, in which Abbott will
pay $1.6 billion in criminal and civil fines. The announcement generated heavy
media coverage, including a brief mention on ABC World News.
ABC World News reported,
"Tonight one of the largest drug companies, Abbott Laboratories, has
agreed to a staggering settlement. Today $1.6 billion in criminal and civil
fines for improperly marketing the anti-seizure drug Depakote in nursing homes.
The company convinced the nursing homes to use the drug to treat aggression in
dementia patients, despite the lack of credible evidence that the drug was
effective for that use."
The
New York Times reports, "The
settlement comes as the Justice Department and the states have increased
scrutiny of the sales and marketing practices of pharmaceutical companies,
particularly in cases in which they market drugs for uses that are not approved
by the Food and Drug Administration."
The
Wall Street Journal reports that in
addition to the fines, Abbott would plead guilty to a misdemeanor charge of
violating a federal drug law.
The Washington Post notes the settlement "is the
second-largest in a string of multimillion-dollar payouts in recent years
resulting from stepped-up enforcement by the Justice Department and state
investigators against drug makers that 'misbrand' their products. The company
will to plead guilty to one misdemeanor violation of the Food, Drug and
Cosmetic Act for misbranding. Abbott also agreed to a five-year probationary
period in which it must report any probable violations of the law to the
probation office."
The
Chicago Tribune reports, "As
part of the settlement agreement, North Chicago-based Abbott said it would pay
$800 million to resolve civil cases brought by federal and state governments,
$700 million in criminal penalties and $100 million to states to resolve
consumer protection matters. The company will plead guilty to one misdemeanor
violation of the Food, Drug and Cosmetic Act for misbranding. Abbott also
agreed to a five-year probationary period in which it must report any probable
violations of the law to the probation office."
The Chicago Sun-Times reports, "The company admitted
that it trained a specialized sales force to promote Depakote in treating
dementia because the drug was not subject to federal regulations designed to
prevent the use of unnecessary medications in nursing homes."
