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Mallinckrodt Agrees to Pay $260M to Settle False Claims Act Lawsuit Alleging Payment of Illegal Kickbacks and Medicare Drug Rebate Underpayments

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that pharmaceutical company Mallinckrodt ARD LLC (previously Questcor Pharmaceuticals, Inc., “Questcor,” and collectively “Mallinckrodt”), has agreed to pay $260 million as part of a global settlement to resolve separate allegations that Mallinckrodt violated the False Claims Act by knowingly: 1) using a foundation as a conduit to pay illegal copay subsidies in violation of the Anti-Kickback Statute; and 2) underpaying Medicaid rebates due to the large price increases of its drug H.P. Acthar Gel (“Acthar”).

Read more on www.justice.gov

Action Details

  • Date:March 9, 2022
  • Agency:U.S. Attorney’s Office, Eastern District of Pennsylvania
  • Enforcement Types:
    • Criminal and Civil Actions