Warner Chilcott Settlement Agreement

The civil part of the Warner Chilcott agreement was filed under the False Claims Act, which protects whistleblowers. Seeger Weiss LLP represented two former Warner Chilcott Pharma salespeople who filed a lawsuit against the “whistleblowers” who tamed after being told by their employer to participate in illegal activities. Former employees of Warner Chilcott have also been actively involved in a lengthy state criminal investigation, which has resulted in criminal prosecutions of several executives, managers and doctors. The Warner Chilcott plea deal was part of a broader comparison with the U.S. Department of Justice (DOJ), in which the pharmaceutical company agreed to pay US$125 million and plead guilty to allegations of illegal marketing. In addition to the company`s civil and criminal liability, several company executives have also been charged or convicted. Warner Chilcott has agreed to plead guilty to public health fraud and will pay $125 million to the government to settle civil and criminal charges against him. As part of the plea, Warner Chilcott will pay a US$22.9 million fine and a $102 million civil agreement to the federal government and states that have made payments through Medicare, Medicaid and other programs. Whistleblowers who sued Warner Chilcott in 2011 under the False Claims Act receive approximately $22.9 million from the civil portion of the transaction. The comparison resolved accusations that the company used various means to illegally promote the use of its drugs.

These drugs include actonel®, Asacol®, Atelvia®, Doryx®, Enablex®, Estrace®, and loestrin®. Illegal activities included the payment of bribes to influence doctors to prescribe these drugs; The use of health information for protected patients to complete pre-authorization forms; employees who, as physicians, support each other when presenting these forms to insurance companies, so that the more expensive Warner Chilcott (Atelvia® and Actonel®) osteoporosis drugs are allowed instead of their competitors` cheaper drugs; and misrepresentations about the superiority of the drug Actonel ®. The civil agreement was implemented by U.S. Assistant Attorneys Sonya Rao and Susan Poswistilo of the Ortiz Civil Division and Trial Counsel Colin Huntley of the Civil Division of Justice Branch. Under the resolution, whistleblowers were entitled to approximately $22.9 million from the federal portion of the civil payment agreement. The payment provision allows the government to compensate whistleblowers who may have sacrificed financial security, status and employment and encourages the fight against fraud in the health sector and other public procurement. Warner Chilcott U.S. Sales LLC, a subsidiary of pharmaceutical manufacturer Warner Chilcott PLC, has agreed to plead guilty to a public health fraud charge, as announced today by the Department of Justice. The plea drawn is part of an overall comparison with the United States, where Warner Chilcott agreed to pay $125 million to settle his criminal and civil liability resulting from the illegal marketing of the drugs Actonel®, Asacol®, Atelvia®, Doryx®, Enablex®, Estrace® and Loestrin®. Prior to Warner Chilcott`s admission of guilt today, several people also pleaded guilty or were charged in connection with the company`s illegal activities.

Warner Chilcott U.S. Sales, a subsidiary of pharmaceutical manufacturer Warner Chilcott, today reached a $125 million agreement with the Department of Justice to resolve criminal and civil liability charges stemming from the illegal marketing of seven of its drugs.