Tennessee will get $15.6 million from what authorities said amounts to the largest combined federal and state health-care fraud settlement in the U.S. Department of Justice's history.
"The pharmacy industry does a lot of good for a lot of people," said Michael Bassham, senior counsel in the state attorney general's office. "Unfortunately, there are a lot of ways to submit false claims to the government."
Announcing the settlement Wednesday, federal authorities said it included the largest criminal fine in U.S. history — $1.2 billion. The agreement also included a criminal forfeiture of $105 million and $1 billion in civil penalties tied to how drugs were marketed.
Authorities called Pfizer a repeat offender, noting it was the fourth such settlement of government charges in the past decade. The government said it plans to monitor the company's conduct for the next five years to rein in abuses, which reportedly featured elaborate consultant meetings for doctors at resort locations with expenses paid and other perks.
"They were entertained with golf, massages and other activities," said Mike Loucks, the U.S. attorney in Massachusetts.
Loucks said that even as Pfizer officials negotiated deals over past misconduct, the company continued to violate the very same laws with other drugs.
Six corporate whistleblowers who first brought the misconduct to light will share $102 million of the settlement money under federal rules. The False Claims Act lets people file claims of fraud on behalf of the government and then share financially when a settlement occurs.
Tennessee share to fight fraudTennessee's $15.6 million share will largely go to fund TennCare, the state's Medicaid program, and it will help the state attorney general's office fight fraud, officials said.
(2 of 2)Tennessee to get $15.6 million share of record Pfizer settlementWashington Report: Protecting Consumers
