Mallinckrodt has agreed to pay $15.4 million to resolve whistleblower allegations that the drugmaker paid physicians illegal kickbacks to boost prescriptions of its pricey H.P. Acthar Gel, the U.S. Justice Department said.
The alleged misconduct was by 12 sales representatives from Questcor Pharmaceuticals, which Mallincrodt acquired in August 2014.
Prosecutors claim that the drugmaker, between 2009 and 2013, "wined and dined" physicians in order to improve Medicare prescription rates and boost profits. The alleged acts, which resulted in false claims being submitted to Medicare, are a violation of the federal Anti-Kickback Statute and the False Claims Act.
Read the full news release here.