Pharmaceutical company settles civil allegations for $2.8M
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.
FOLLOW THE MBJ ON TWITTERMy Tweets
Twang & Tourism: The Country Music Trail
Top Posts & Pages
- Judge intends to rule on McDaniel's challenge before general election
- Oxford’s FNC getting new headquarters
- QUIRKY? NO, JERKY — Whatever your craving, Beef Jerky Outlets likely has the flavor among 200+ choices
- (UPDATE) I-20 partially closed as vehicle carrying hazardous materials burns
- Coast family wins $644K in tideland lawsuit against state
- Officials set hunting dates for birds; expands dove season by 20 days
- State’s MAGIC accounting system works, albeit with glitches
- Corps official: River needs larger ports, locks and dams
- C Spire, UM installing Wi-Fi network at Vaught-Hemingway Stadium