Attorney general’s medicaid fraud control unit recovers more than $450,000 from pharmaceutical manufacturer

Photo: MGN

(Baton Rouge, LA) — Attorney General Buddy Caldwell announced today that Louisiana, other states and the federal government reached a settlement with New Jersey-based pharmaceutical manufacturer Daiichi Sankyo Inc., over allegations that the company illegally provided lavish meals and used other incentives as kickbacks for healthcare providers who prescribed the drugs Azor, Benicar, Tribenzor and Welchol.

As a result, Daiichi Sankyo will pay back $452,344.43 to Louisiana.  In total, Daiichi Sankyo will pay back the states and federal government $39 million in civil damages and penalties.

“These types of practices often result in medications being prescribed unnecessarily, with taxpayers footing the bill,” Caldwell said. “Our in-house civil Medicaid Fraud Control Unit has worked diligently with the National Association of Medicaid Fraud Control Units and the federal government to curtail this reckless behavior and I am proud of their success.”

An investigation found that Daiichi Sankyo allegedly provided kickbacks in the form of honoraria payments, meals and other remuneration to certain healthcare providers between 2004 and 2011.

Forty-nine states and the District of Columbia are participating in the settlement.

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