Drugmaker to Pay $116 Million in Fraud Settlement

The U.S. Department of Justice (DOJ) has reached a $116 million settlement with Avanir Pharmaceuticals, four years after three whistleblowers alleged that the firm was paying kickbacks to doctors and illegally marketing its flagship drug, especially in nursing communities, reports CNN . DOJ officials also said two doctors and two Avanir salespeople have been indicted for their alleged involvement. The charges reflected crimes exposed by a 2017 CNN probe into inappropriate and potentially fraudulent use of Avanir's Nuedexta medication in nursing communities. Avanir stated it had cooperated with the government investigation and "engaged in extensive remedial measures," which the government said included firing or otherwise removing multiple workers. Nuedexta only has federal approval to treat pseudobulbar affect, a rare condition characterized by uncontrollable laughing and crying. However, the whistleblowers claimed Avanir unlawfully directed salespeople to market Nuedexta in nursing communities as an alternative to antipsychotics, specifically for "use in controlling the behavior of persons prone to disruptive outbursts" — even amid an attempted federal crackdown on the use of antipsychotics in restraining seniors with dementia. The whistleblowers also alleged that salespeople coached physicians on how to fill out prescriptions to ensure approval, forged doctor signatures on documents for insurers, and asked nursing community employees for names of residents to compile lists of people doctors should target with the drug.