Pharmaceutical company settles civil allegations for $2.8M
by Associated Press
Published: March 29,2012
MADISON — A Mississippi-based pharmaceutical company has agreed to pay $2.8 million to resolve civil allegations that the manufacturer falsely marketed skin products to receive government funding.
U.S. Attorney John M. Bales said yesterday Cypress Pharmaceutical Inc., a subsidiary and CEO Max Draughn will pay $1.6 million to the military’s TRICARE program and $1.2 million to state Medicaid programs.
The government alleges that Cypress subsidiary Hawthorne Pharmaceuticals Inc. claimed that three skin products carried the Food and Drug Administration’s “safe and effective” designation when the treatments didn’t. The government also claims the regulatory status of the products was misrepresented.
Bales says a whistleblower who sued under the False Claims Act received $300,000 as part of the settlement.
An official for Madison-based Cypress didn’t immediately return a phone call seeking comment.
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- District at Eastover construction to start later this year
- Fervor grows for Tuscaloosa Marine Shale
- Stabenow, Cochran brace for full Senate vote on Farm Bill
- Ex-Northwest Rankin coach David Coates dies before drug trial
- Keeping Our Eye On Nathan McNeill
- Counties ‘hoping to get it right’ as they await Tuscaloosa Marine shale boom
- OUR VIEW: USM makes right call by calling off tornado relief campaign
- Forward-thinking power companies transform “disruptions” into opportunities