Pharmaceutical Company to Pay Government $9.8 Million

 

Pharmaceutical Company Agrees to Pay Government $9.8 Million to Settle Whistleblower Claims

Medicis Pharmaceutical Corp. will pay $9.8 million to settle allegations that it promoted the use of a topical skin preparation for unapproved use.

Overland Park, Kan. (PRWEB) May 9, 2007 -- "Medicis Pharmaceutical Corp. will pay $9.8 million to settle allegations that it promoted the use of a topical skin preparation for unapproved use," the United States Department of Justice said Tuesday (Case 04-2389 in federal court in Kansas).

The four whistleblowers, represented by Brous Horn LLC of Overland Park, Kan., informed the government of the pharmaceutical company's allegedly illegal marketing practices that resulted in the settlement.

The four were former Medicis sales representatives who alleged that Medicis trained them to market one of its drugs to doctors for an off-label use, not approved by the Federal Drug Administration (FDA).

The whistleblowers alleged that they were trained to market a prescription drug called Loprox to pediatricians for use on children under the age of 10 to treat diaper rash and other skin conditions. The FDA has never approved the use of Loprox on children under the age of 10.

"Although doctors can prescribe medications to patients for off-label uses," says attorney Carrie Brous, Brous Horn, Overland Park, Kan., "it is illegal for pharmaceutical companies to market their drugs to doctors for off-label uses."

Medicis allegedly misused federal and state funds by marketing Loprox off-label to doctors, causing claims to be submitted to Medicaid for Loprox dispensed for the treatment of children under 10 years of age.

"Because of the False Claims Act, the four whistleblowers will receive a portion of the $9.8 million settlement as a reward for coming forward with information," says Brous.

The Act was first enacted by Congress in 1863 during the Civil War amid widespread fraud on the Union military by suppliers who would, for example, charge the government twice for the same cavalry horse. The Act encouraged reporting of the fraud by private citizens by providing a 50 percent reward to the whistleblower. The act was scaled way back in 1943, but Congress sweetened it in 1986 as a reaction to reports of widespread fraud and Cold War defense spending under President Ronald Regan. The Act now provides for a 15 to 30 percent reward to whistleblowers.    

Brous Horn LLC is a plaintiffs' law firm specializing in commercial, employment, and serious personal injury litigation. Since 2003, Brous Horn has been serving clients in the Kansas City metropolitan area and nationwide. The Brous Horn office is located in Overland Park, Kan. For more information, please contact Carrie Brous or Tammy Horn at 913.897.7877 or visit their website at www.broushorn.com.

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Press Contact: Melissa Sandfort
Company Name: Brous Horn
Phone: 816-474-3166
Website: www.broushorn.com