Victory Pharma to Pay $11.4 Million to Resolve False Claims Allegations, Gets Prosecution Deferred

Victory Pharma Inc., a specialty pharmaceutical company headquartered in San Diego, will pay $11,420,743 to resolve federal civil and criminal liability arising from its marketing of the pharmaceutical products Naprelan, Xodol, Fexmid and Dolgic.

Victory entered into a deferred prosecution agreement and paid a criminal forfeiture of $1.4 million to resolve federal Ant-Kickback Statute allegations.

The company paid $9,938,310 to resolve False Claims Act allegations.

The settlement resolves allegations that Victory engaged in a scheme to promote its drugs by paying kickbacks to doctors to induce them to write prescriptions for Victory’s products, including prescriptions for patients covered by Medicare and other federal health insurance programs.

The kickbacks included tickets to professional and collegiate sporting events, tickets to concerts and plays; spa outings; golf and ski outings, dinners at expensive restaurants, and numerous other out-of-office events.

Victory also encouraged its sales representatives to schedule paid “preceptorships,” which involved sales representatives “shadowing” doctors in their offices.

The settlement also resolves allegations that Victory improperly used these preceptorships to induce doctors to prescribe Victory’s products.

The settlement resolves a False Claims Act lawsuit filed in the Southern District of California by Chad Miller, a former sales representative for Victory.

As part of the settlement, Miller will receive $1.7 million.


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