AG Gansler: Endo Pharmaceuticals to Pay $193 Million for Marketing Scheme
Maryland to receive $685,000 for illegal promotion of shingles drug Lidoderm
Baltimore, MD (February 26, 2014) - Attorney General Douglas F. Gansler announced today that Maryland, joined by other states and the federal government, has secured a global settlement with Endo Pharmaceuticals, a wholly owned subsidiary of Endo Health Solutions. The agreement resolves allegations of unlawful marketing practices of Lidoderm, a pain reliever approved by the Food and Drug Administration (FDA) for the treatment of shingles. Maryland's share of the $172.9 million national settlement is $684,540.45, a portion of which will be shared with the federal government, which provides funding for the Maryland Medicaid program.
"Patients in need of proper treatment and Maryland taxpayers deserve integrity from a major drug maker," said Attorney General Gansler. "If you deceive the sick and attempt to treat Medicaid like a cookie jar, we will come after you."
Endo will also pay a $20 million fine to the federal government. The FDA only approved Lidoderm for the treatment of pain associated with post-herpetic neuralgia, more commonly known as shingles. It is alleged that Endo knowingly promoted the sale and use of Lidoderm in connection with lower back and chronic pain between March 1999 and December 2007. These uses are not medically accepted and were not covered by Maryland Medicaid.
Endo will also enter into a Deferred Prosecution Agreement with the United States Attorney's Office for the Northern District of New York and a Corporate Integrity Agreement with the United States Department of Health and Human Services' Office of the Inspector General.
Attorney General Gansler thanked Medicaid Fraud Control Unit Chief Auditor Ruth Jarrell for her work on this case. A team from the National Association of Medicaid Fraud Control Units worked with the federal government on the investigation and conducted settlement negotiations with Endo on behalf of the states.