Litigation > False Claims Act/Qui Tam Defense > State FCA Resource Center > Mallinckrodt Settles FCA Claims for $3.5 Million
23 Jul '13

On July 18, 2013, the United States Department of Justice announced that pharmaceutical manufacturer Mallinckrodt LLC agreed to pay $3.5 million to settle whistleblower allegations that it violated the federal and several state false claims acts by paying kickbacks to doctors and thereby causing the submission of false claims to Medicare and Medicaid. The settlement resolves a lawsuit filed by John Prieve, a former Mallinckrodt employee, in 2008 in the Northern District of California, titled Unites States ex rel. Prieve v. Mallinckrodt, Inc., Case No. 3:08-cv-01863-TEH. Prieve alleged that Mallinckrodt paid doctors kickbacks and engaged in improper off-label promoting and marketing practices to increase prescriptions of three drugs, causing the submission of false claims for reimbursement to Medicare and Medicaid. The United States will receive approximately $3.173 million, and eight states, including California, New York, Texas and Virginia, will split the remaining settlement funds. The DOJ’s press release is available here.