Wednesday, September 2, 2009

Tennessee to get $15.6 million share of record Pfizer settlement

Tennessee will receive a $15.6 million share in the largest health care fraud settlement in history of the U.S. Justice Department.
Drug maker Pfizer agreed to pay $2.3 billion including to resolve claims it fraudulently marketed the anti-inflammatory drug Bextra for uses and dosages a regulator specifically declined to approve due to safety concerns and that it illegally promoted other drugs.

Tennessee’s share will come from the roughly $1 billion in civil damages and penalties that Pfizer would pay states and the federal government to compensate Medicare, Medicaid and other federal health care programs for harm suffered because of its conduct.

Pfizer also will pay a criminal fine of $1.195 billion, the largest ever imposed in the United States. And its Pharmacia & Upjohn Co. unit will forfeit $105 million, for a total criminal resolution of $1.3 billion.

Separately, Tennessee will receive $786,804 as part of a separate multi-state agreement with Pfizer related to its alleged unlawful improper marketing of the antipsychotic drug Geodon.




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