Par Pharmaceutical Companies Agrees to Pay $45 million to Resolve Criminal and Civil Investigations
Par Pharmaceutical Companies (“Par”) pled guilty in Newark, NJ federal court today, agreeing to pay $45 million to resolve its criminal and civil liability in the company’s promotion of its prescription drug Megace® ES for uses not approved as safe and effective by the Food and Drug Administration (“FDA”) and not covered by federal and state health care programs.
Blank Rome LLP was counsel in one of the three lawsuits filed under the whistleblower provisions of the False Claims Act being settled today with Par.
“Par’s marketing scheme cost the United States and the States millions of dollars,” said Blank Rome Partner W. Scott Simmer. “Today’s settlement shows that whistleblower laws uncover fraud that may be known only to company insiders,” added Mr. Simmer.
In addition to the criminal and civil resolutions, Par will also enter into a Corporate Integrity Agreement with the Office of the Inspector General of the Department of Health and Human Services. This Agreement calls for ongoing internal and external monitoring of Par’s corporate activities, increasing the company’s accountability and transparency on matters including sales executives’ compensation and bonuses related to the sale of Megace® ES.
The Blank Rome Team was led by W. Scott Simmer, Nicholas C. Harbist, and Thomas J. Poulin.