A settlement has been reached in a whistleblower class action lawsuit brought against Victory Pharma Inc who is accused of paying kickbacks to doctors to induce them to write prescriptions for Naprelan, Xodol, Fexmid and Dolgic, for patients covered by Medicare and other federal health insurance programs.
The whistleblower will receive $1.7 million of the government's recovery.
The government's complaint was filed in 2012 stemming from an earlier filed suit filed by the whistleblower. The United States alleged that Victory engaged in a scheme to promote its drugs by paying kickbacks to doctors to induce them to write prescriptions for Victory’s products, including prescriptions for patients covered by Medicare and other federal health insurance programs. The kickbacks included tickets to professional and collegiate sporting events; tickets to concerts and plays; spa outings; golf and ski outings; dinners at expensive restaurants; and numerous other out-of-office events. Victory also encouraged its sales representatives to schedule paid “preceptorships,” which involved sales representatives “shadowing” doctors in their offices. The settlement also resolves allegations that Victory improperly used these preceptorships to induce doctors to prescribe Victory’s products.
