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The state has won more than $500,000 from a national settlement over the illegal marketing of the pain relief patch Lipoderm.
Attorney General George Jepsen joined with Chief State's Attorney Kevin T. Kane and Roderick L. Bremby, commissioner of the state Department of Social Services, to announce Tuesday that a settlement with Endo Health Solutions Inc. and Endo Pharmaceuticals Inc. would result in more than $1 million in Medicaid reimbursements. Of this amount, $533,404 was to be applied for state Medicaid overpayments.
The national settlement amounted to $172.9 million to resolve civil claims. An additional $20.8 million in criminal forfeitures came after whistleblower lawsuits charged that Lipoderm was being promoted to treat carpal tunnel syndrome and chronic pain, among other unapproved uses.
"Improper marketing of drugs leads to false and fraudulent claims against our Medicaid program," Jepsen said in a statement.
Law360.com reported late last week that Endo has signed a corporate integrity agreement requiring new procedures to ensure illegal marketing practices are a thing of the past. The illegal marketing, according to lawsuits, occurred from March 1999 to December 2007.
"By marketing Lipoderm for uses not covered by federal health care programs, Endo profited at the expense of taxpayers and could have put patients at risk," U.S. Department of Health and Human Services Inspector General Daniel Levinson said in a statement.
"Under our CIA, Endo agrees to promote its products legally, while board members and top executives are specifically held accountable for compliance," Levinson said.
This isn't the end of Endo's legal troubles. Earlier this month, the company announced that it set aside $520 million to pay for lawsuits related to its transvaginal mesh products.