Corporate Corruption Case Filed Against Abbott Laboratories, Inc.
In July 2003, under the False Claims Act, a division of Abbott Laboratories, Inc. had pled guilty in obstructing a criminal investigation, as well as manipulated the Medicare and Medicare programs. The pharmaceutical company promised to pay 0 million to resolve civil claims. Furthermore, the subsidiary of Abbott Labs, CG Nutritionals, Inc., agreed also to a criminal fine of 0 million. The case stem from the Abbott/CG Nutritionals scam which involved the sale of pumped special foods into the digestive systems of the patients who do not have the capacity to , are not able to swallow food in a normal way due to diseases or some other disorders.
(http://www.taf.org/top20.htm)
Recently, the report of Bloomberg was featured in the Health Care Renewal BlogSpot featured last November 15, 2011, stating that Abbott Laboratories, Inc. has to settle .3 Billion allegations for bribing the doctors and training them to make false diagnoses on the patients. Bloomberg reported that the above company has to pay at least $ 1.3 billion in order to settle claims by the American government along with the 24 states alleging the company to sell Depakote epilepsy drug to patients through some doctors’ connivance. The U. S. federal prosecutors and the drug maker have agreed to settle the issue by charging Abbott Laboratories, Inc. with a $ 800 million to resolve the civil claims regarding the Depakote epilepsy drug. At the same time, the drug maker also been charged of 0 million for the criminal fines for the illegal selling of the said Depakote epilepsy medicine, even without the proper approval for its distribution in the market. The company has about to reserve .5 billion budget to cover all the costs of the possible settlement over the issue. Apparently, the Abbott Laboratories, Inc. settlement considered the third-biggest illegal pharmaceutical marketing agreement in the history of the United States. This case reminds the public on the .3 billion which Pfizer paid in year 2009 over the promotion of Bextra painkiller among other drugs; as well as the .4 billion Eli Lilly & Co. that paid in the same year for selling Zyprexa anti-psychotic drugs. Subsequently, the Bloomberg report discussed the dishonest acts executed by Abbott that caused it to this huge amount of settlement. On the other hand, former Abbott employees filed a complaint to the U. S. government, alleging the drug maker to engage in off-label marketing since the later part of 1990. The file suit involved illegal sales practices that led to false claims to government health programs.
(http://www.businessweek.com/news/2011-10-21/abbott-said-to-agree-to-pay-1-3-billion-for-depakote-suits.htm)
Another article published in the Chicago Tribune has discussed again the allegations made by the whistle-blowers against the Abbott Laboratories, Inc. over the unapproved distribution of Depakote drugs to patients diagnosed with dementia, autism, sexual compulsion and other disorders. According to the report, Depakote had been approved by the Food and Drug Administration in 1983 for treating some seizures in children and adults, and to treat seizures, manic occurrences of bipolar disorder and treat migraine headaches. However, it was never approved to treat Alzheimer’s disease, dementia, or for general treatment of bipolar disorder of the patient. The lawsuits have been worsening by the alleged training of the Abbott Lab sales people to sell Dapakote off-label to some hospitals. This report from Chicago Tribune stressed once more the illegal payment by Abbott Lab to doctors in the hospitals to recommend the drugs to their patients. This case has been filed in the federal court in Virginia, Illinois.
(http://www.cbsnews.com/8618-31727_162-20047027.html?assetTypeId=&messageId=10570106&blogId=)
Correspondingly, in 2007 nationwide conference, Abbott trainer had been reported to allegedly coach sales rep on how to explain to the doctors on how to make false diagnoses just to be able to bypass the federal regulations on the particular drug. For instance, a doctor could diagnose falsely the patient with “'late onset of bipolar or underlying seizure disorder' as a substitute for ‘agitation associated with dementia.” It was also found out that Abbott conducted trainings about off-label promotion, and even held the training outside its North Chicago control office. The sales representatives gave techniques for of-labeling, but could not give any written literatures about the topic to all participants in the training. McCoyd’s law suit against Abbott stated that there was about ,000 up to ,000 for the allocation of doctors’ trainings about the illegal use of Depakote drugs. It has been also reported that the company has been paid doctors from 0 up to ,000 per talk. This illegal training was funded by intermediaries and associations together with the Alzheimer’s Association, though, the association denied the involvement of the said illegal acts.
(http://www.cbsnews.com/8618-31727_162-20047027.html?assetTypeId=&messageId=10570106&blogId=)
References:
(http://www.taf.org/top20.htm)
(http://www.businessweek.com/news/2011-10-21/abbott-said-to-agree-to-pay-1-3-billion-for-depakote-suits.htm)
(http://www.cbsnews.com/8618-31727_162-20047027.html?assetTypeId=&messageId=10570106&blogId=)
Credit:ivythesis.typepad.com
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