Drug company and CEO pay $47 million over alleged kickbacks and false claims

A pharmaceutical company and its chief executive have agreed to pay $47 million to settle allegations, first brought by whistleblowers, that the company paid kickbacks and filed false claims, the Department of Justice said.

The U.S. Department of Health and Human Services (HHS), which manages Medicare, Medicaid and other federal health programs, takes a hard line against free tests, drugs or offerings provided to patients or doctors, actions which may induce them to prescribe or use a particular drug or  service, or use of medical equipment.

The HHS foots part of the bills for these patients, and it believes that free offerings are kickbacks intended to steer patients to services and drugs they otherwise may not use. If the HHS concludes that kickbacks were at play, it considers any related bills or “claims” to be false claims and a violation.