(Boise) – Attorney General Lawrence Wasden announced today that Idaho has joined with other states and the federal government in reaching an agreement with PharMerica Corporation (PharMerica) to settle civil allegations that PharMerica conspired with Abbott Laboratories (Abbott) through a number of disguised kickback arrangements to increase overall utilization of Depakote and to promote misbranded Depakote.
The states contend that from January 1, 2001, through December 31, 2008, PharMerica knowingly solicited and received illegal remuneration from drug manufacturer Abbott in the form of rebate agreements that required PharMerica to engage in certain promotional programs, grants, and other financial support. This alleged conduct resulted in false claims to Medicaid and other federal healthcare programs.
PharMerica will pay the states and the federal government a total of $9.25 million in civil damages to compensate Medicaid, Medicare, and various federal healthcare programs, for harm suffered as a result of its conduct. This settlement is based on two qui tam cases that were consolidated and are pending in the United States District Court for the Western District of Virginia in Abingdon, Virginia. The cases were filed under federal and state false claims statutes. As part of the settlement, the State of Idaho will receive $7,165 in restitution and other recovery.
A state team appointed by the National Association of Medicaid Fraud Control Units participated in the investigation and conducted the settlement negotiations with PharMerica on behalf of the participating states.
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