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Forest Labs to pay $38M for False Claims Act violations

Jaclyn Jaeger | December 21, 2016

Forest Laboratories and its subsidiary, Forest Pharmaceuticals, have agreed to pay $38 million to resolve allegations that they violated the False Claims Act by paying kickbacks to induce physicians to prescribe its drugs.

As a result of the settlement, the federal government will receive $35.5 million and state Medicaid programs will receive $2.5 million. The Medicaid program is funded jointly by the state and federal governments.

“Kickback schemes undermine the integrity of medical decisions and increase the costs of health care for everyone,” Principal Deputy Assistant Attorney General Benjamin Mizer, head of the Justice Department’s Civil Division, said in a statement. “Such schemes are...

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