Lawsuit: Drugmaker improperly used charity to pay kickbacks

PHILADELPHIA — Federal prosecutors say a pharmaceutical firm improperly used a charity to pay kickbacks that subsidized Medicare patients' copayment obligations, allowing the firm to keep raising prices for the drug.

The suit filed Wednesday claims the scheme was designed to enable Mallinckrodt to raise the price of Acthar from $50 to $32,000. The drug is used to treat acute exacerbations in multiple sclerosis, lupus and rheumatoid arthritis.

Mallinckrodt could face fines of nearly $240 million. Prosecutors say the scheme operated from 2010-2014, causing the submission of millions of dollars in false Medicare claims for the drug. Drug companies are not allowed to cover patients' copayments.

Mallinckrodt said it intends to vigorously defend itself against the allegations.

Must Read

Kuwait expels Philippines ambassador amid maid...

Apr 25, 2018

Kuwait expels Philippines ambassador, recalls own envoy amid dispute over housemaid abuse

Designer Louboutin wins case on red soled...

Jun 12, 2018

The European Union's top court has defended French fashion designer Christian Louboutin's claim to...

Latvia loses case to suspend indicted ECB official

Feb 26, 2019

The European Union's top court has annulled Latvia's decision to suspend its chief central banker...

Lawyer: Timbuktu residents felt shame after sites...

Aug 24, 2016

By reducing historic mausoleums in Timbuktu to dusty piles of rubble, Islamic extremists desecrated...

Relatives of MH17 victims seek EU help in getting...

Aug 31, 2016

Frustrated relatives of those killed when Malaysia Airlines Flight 17 was shot out of the sky over...