Business

U.S. says Shire subsidiaries to pay $350 million to settle false claims act allegations

U.S. says Shire subsidiaries to pay $350 million to settle false claims act allegations
A sign sits in front of Shire's manufacturing facility in Lexington, Massachusetts. Photo: Reuters
Published: 11:50 PM, January 11, 2017

WASHINGTON - Shire PLC subsidiaries will pay $350 million to settle U.S. federal and state False Claims Act allegations related to unlawful methods to push “Dermagraft,” a treatment for diabetic foot ulcers, the U.S. Justice Department said in a statement on Wednesday.

"The settlement resolves allegations that Dermagraft salespersons unlawfully induced clinics and physicians with lavish dinners, drinks, entertainment and travel; medical equipment and supplies; unwarranted payments for purported speaking engagements and bogus case studies; and cash, credits and rebates, to induce the use of Dermagraft," it said. REUTERS