Warner Chilcott US Sales LLC., now part of Allergan Plc., agreed to plead guilty to felony health care fraud and pay $125 million to resolve U.S. charges that it paid kickbacks to doctors to induce them to prescribe several of its drugs.
The U.S. Department of Justice, which announced the settlement, also said former Warner Chilcott President W. Carl Reichel was arrested on Thursday in Boston and charged with one count of conspiring to pay the kickbacks.
At least four other people have pleaded guilty or been charged in connection with Warner Chilcott’s activities, the department said.
The accord resolves charges that from 2009 to 2013, Warner Chilcott illegally marketed seven drugs, such as Asacol to treat ulcerative colitis, and Actonel and Atelvia to treat post-menopausal osteoporosis.
Investigators said the activities included the making of payments or offering of perks such as expensive restaurant meals to persuade doctors to prescribe the drugs.
In the criminal part of the case, Warner Chilcott agreed to pay a $22.94 million fine and admit to paying kickbacks, improperly inducing insurers to pay for Atelvia prescriptions, and making unsubstantiated claims about Actonel.
The company also agreed to pay $102.06 million to the U.S. government and states to resolve civil charges that it caused false claims to be submitted to government health care programs.
Whistleblowers who sued Warner Chilcott under the federal False Claims Act in 2011 will receive about $22.9 million from the civil settlement, the Justice Department said.
Allergan did not immediately respond to requests for comment.
Reichel, 57, is from Chester, New Jersey, the government said. His lawyer had no immediate comment. Allergan has offices in Parsippany, New Jersey.
Warner Chilcott was acquired by Actavis Plc. in October 2013. Actavis bought Allergan in March 2015 and took its name.