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SUNDAY, NOVEMBER 22, 2009
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Pfizer Pays Record $2.3B Fine for False Marketing

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(Newser) – Pfizer will shell out $2.3 billion—a record for a health care fraud settlement—over deceptive marketing of its drugs, the Los Angeles Times reports. Pfizer and one of its subsidiaries marketed four drugs based on off-label uses specifically prohibited by the FDA. The settlement with the Justice Department includes a $1.3 billion criminal fine and $1 billion to settle civil claims.

As part of the settlement—which resolves allegations that Pfizer gave doctors kickbacks to prescribe the drugs for the unspecified off-label uses—six whistleblowers who brought the fraud to the government’s attention will receive $102 million. Pfizer will also have to enter an HHS program designed “to avoid and promptly detect” criminal conduct. The four drugs in question were Bextra, Geodon, Zyvox, and Lyrica.

The company logo for drugmaker Pfizer Inc.
The company logo for drugmaker Pfizer Inc.   (AP Photo)
A bottle of Bextra.
A bottle of Bextra.   (AP Photo)
Associate Attorney General Tom Perrelli, center, Health and Human Services Secretary Kathleen Sebelius, left, and Assistant Attorney General for the Civil Division Tony West announce the settlement.
Associate Attorney General Tom Perrelli, center, Health and Human Services Secretary Kathleen Sebelius, left, and Assistant Attorney General for the Civil Division Tony West announce the settlement.   (AP Photo)
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14 comments
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Timinator2K
Sep 2, 09 1:21 PM CDT
Not to worry about your Pfizer stocks, all you rich socialist newsers, this big pharma will end up writing it off as a cost of doing business and your dividends will keep rolling in to your socially-aware pockets. Reply
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-8
IN RESPONSE:
IndependentThinker
Sep 2, 09 2:51 PM CDT
How did this become about socialism? This is capitalism at work! Big business making lots of money killing innocent people while telling everyone else they are the good guys. This has nothing to do with socialism, and it exemplifies what is wrong with the current American model of capitalism.
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+6
IN RESPONSE:
shonangreg
Sep 2, 09 5:01 PM CDT
Absolutely, Independent. When Bush gutted the FDA and had the pharmaceutical companies do their own testing, they predictably screwed up. They played the odds, killed a bunch of people, and got a slap on the wrist afterward. ....... And you're right, Tim, this is just the cost of doing business *in a less socialized society*. If we were more socialized, these drugs never would have made it to market. In an even less socialized society, there would not be any penalty assessed by the government. Pfizer's reputation in the market would be the only check -- IF the information could ever get out under such a chaotic scheme. Care to point out the flaw in my logic, Tim? Unrestrained capitalism *will not work*. It breaks itself. And this is what the Republican Party pays homage to. You guys do not acknowledge *any* level of socialization is warranted. Tools you all are for a huge, 40-year ad campaign.
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0
Laura
Sep 2, 09 1:22 PM CDT
I want to be a whistle-blower when I grow up. Reply
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+9
IN RESPONSE:
bewilderbeast
Sep 3, 09 5:07 AM CDT
You don't. These brave people usually get short shrift, attacked by the liars and thieves they report.
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+1

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