Pharmaceutical company to pay $140K to Medicaid - Dallas News |

Pharmaceutical company to pay $140K to Medicaid

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CHICAGO (Sun-Times Media Wire) -

A pharmaceutical company will pay $140,000 to Illinois' Medicaid program as part of a $12 million settlement for illegally promoting four of its drugs and defrauding state and federally funded health care programs across the country.

Victory Pharma offered kickbacks to doctors to encourage Medicaid patients to use the drugs Naprelan, Xodol, Fexmid and Dolgic, according to the Illinois Attorney General's office. The drugs in question are painkillers and muscle relaxants.

The settlement will compensate Medicaid, Medicare and various federal programs for financial losses, the release said.

"My office will take action against pharmaceutical companies that use illegal sales tactics and profit from pushing their drugs on patients," Atty. Gen. Lisa Madigan said in a statement.

Victory Pharma pleaded guilty to charges related to the kickbacks, a release from the AG's office said. The company must also enter into a corporate integrity agreement with the U.S. Department of Health and Human Services' Office of the Inspector General, which will monitor future marketing and sales practices.

This settlement is based on a whistleblower action filed in Southern California.

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