Pfizer to Settle FCA Case for $784.6M

Pfizer will pay $784.6 million to settle Justice Department allegations that a subsidiary overcharged Medicaid under a tentative agreement announced Tuesday.

As part of the deal, the company will pay the sum in exchange for federal authorities dropping an investigation into Wyeth’s billing practices. Pfizer acquired Wyeth in 2009.

Wyeth allegedly miscalculated Medicaid rebates for its gastroesophageal reflux disease drug Protonix between 2001 and 2006, in violation of the False Claims Act and other federal laws.

Once finalized, the agreement is expected to resolve cases pending in Federal District Court for the District of Massachusetts.

The settlement is the first major pharmaceutical settlement with the DoJ for 2016. Pfizer said that the alleged activities took place before it purchased Wyeth and that the proposed settlement contains no admission of liability.

As part of the agreement, Pfizer reissued its 2015 fourth-quarter records to reflect the $784.6 million charge.

A Pfizer spokeswoman said that the amount agreed upon correlates to Wyeth’s allegedly unjust enrichment. She did not know what the total number of rebate claims submitted, or what other laws Wyeth is accused of violating.

To read the amended complaint, go to — Cameron Ayers


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