Baxter Healthcare to Pay $18 Million Gets Prosecution Deferred

Healthcare company Baxter Healthcare Corporation will pay $18.158 million to resolve its criminal and civil liability arising from Baxter’s failure to follow current Good Manufacturing Practices when manufacturing sterile drug products in North Carolina.

baxter

 

The resolution includes a deferred prosecution agreement and penalties and forfeiture totaling $16 million and a civil settlement under the False Claims Act (FCA) with the federal government totaling approximately $2.158 million.

Baxter is a Delaware corporation and subsidiary of Baxter International Inc., headquartered in Deerfield, Illinois, with many manufacturing facilities throughout the United States and the world, including one in Marion, North Carolina.

Baxter was represented by Mitch Lazris and Michelle Sartori of Hogan Lovells in Washington, D.C.

In a criminal information, the government charged that, between July 2011 and November 2012, Baxter introduced into interstate commerce drugs that were adulterated under the Federal Food, Drug, and Cosmetic Act (FDCA) because Baxter did not follow cGMP when making those products.

At North Cove, Baxter manufactured large-volume sterile intravenous solutions in a clean room that had high-efficiency particulate absorption (HEPA) filters installed in the ceiling.  Air was pushed into the clean room through the HEPA filters.

As alleged in the information, during the relevant time period, a Baxter employee reported the presence of mold on the HEPA filters to plant management.

However, Baxter continued to manufacture IV solutions in that clean room for months while the filters the employee had identified as moldy remained in place.

Subsequent testing of the filters following an unannounced U.S. Food and Drug Administration inspection revealed several mold species on the filters.  There was no evidence of impact on the IV solutions from the mold found on the filters.

In the deferred prosecution agreement to resolve the charge, Baxter admitted that it distributed products in interstate commerce that were adulterated in violation of the FDCA.

Under the terms of the deferred prosecution agreement, Baxter will pay a total of $16 million in monetary penalties and forfeiture and will implement enhanced compliance provisions, including periodic certifications to the government concerning its implementation of those provisions.

In addition, Baxter will pay approximately $2.158 million to resolve allegations that the company violated the FCA by submitting false claims to the Department of Veterans Affairs based upon Baxter’s failure to follow cGMPs.

The civil settlement resolves a lawsuit filed by Christopher Wall, an employee of Baxter, under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery.

Wall will receive $431,535.99 from the proceeds of the civil settlement.

Copyright © Corporate Crime Reporter
In Print 48 Weeks A Year

Built on Notes Blog Core
Powered by WordPress