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Illinois Attorney General Lisa Madigan
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February 11, 2013

MADIGAN: VICTORY PHARMA TO PAY NEARLY $140,000 FOR DEFRAUDING ILLINOIS MEDICAID PROGRAM

Attorney General Announces Settlement with Victory Pharma, Inc. over Kickbacks that Defrauded State & Federal Health Care Programs

Chicago — Attorney General Lisa Madigan joined her state counterparts across the country and the federal government today to announce a $12 million settlement with the pharmaceutical company Victory Pharma Inc. The settlement resolves allegations that Victory Pharma illegally promoted four of its drugs in an effort to defraud state and federally funded health care programs, including almost $140,000 in false claims submitted to the Illinois Medicaid program.

The states and the federal government alleged that Victory Pharma offered kickbacks to medical professionals who encouraged Medicaid patients to use the drugs Naprelan, Xodol, Fexmid and Dolgic.

“My office will take action against pharmaceutical companies that use illegal sales tactics and profit from pushing their drugs on patients in the Illinois Medicaid program,” Madigan said.

Under the settlement, Victory Pharma will pay $12 million in civil damages and penalties to compensate Medicaid, Medicare, and various federal health care programs for harm suffered as a result of its conduct. Victory Pharma also pled guilty to federal criminal charges related to the kickback allegations. The company must also enter into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services’ Office of the Inspector General that will closely monitor the company’s future marketing and sales practices.

This settlement is based on a whistleblower action brought by a private individual pursuant to state and federal false claims acts and filed in the U.S. District Court for the Southern District of California.

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