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You are here: Home / Acel Moore Workshop / AstraZeneca settles Texas drug suits for $110 million

AstraZeneca settles Texas drug suits for $110 million

August 8, 2018 philly Leave a Comment

AstraZeneca has agreed to pay $110 million to settle two lawsuits brought by the state of Texas claiming the drugmaker fraudulently marketed two of its medications. Texas accused the pharmaceutical giant in 2014 of promoting its antipsychotic drug Seroquel to Texas Medicaid providers for unapproved uses, and for misrepresenting the benefits of its cholesterol medication Crestor. According to Bloomberg, the state originally sought roughly $5 billion from AstraZeneca, whose U.S. headquarters is in Wilmington, alleging the company’s misleading marketing scheme resulted in “excessive reimbursements” from Texas’ Medicaid program. One of the whistle-blowers in the case, a former AstraZeneca salesperson named Allison Zayas, was represented by James J. Pepper of The Pepper Law Firm in Jamison. Pepper was the trial counsel for the case. Texas claimed the drug company fraudulently promoted the drugs despite agreeing to not engage in off-label marketing as part of a 2010 deal with the federal government over prior allegations of Medicaid fraud. Among other allegations, Texas claimed the company promoted Seroquel to pediatric psychiatrists even though the Federal Drug Administration had not approved the drug for children and adolescents. The state also accused the drugmaker of paying $465,000 in kickbacks to two state mental health officials to recommend prescriptions of Seroquel. “The allegations that led to this settlement are especially disturbing because the well-being of children and the integrity of the state hospital system were jeopardized,” Texas Attorney General Ken Paxton said in a statement. AstraZeneca is paying $90 million to resolve the Seroquel suit and… [Read full story]



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