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ATTORNEY GENERAL REACHES SETTLEMENT WITH PHARMACEUTICAL COMPANY

LITTLE ROCK - Attorney General Dustin McDaniel announced today that Arkansas, other states and the federal government have reached an agreement with Victory Pharma, Inc., to settle allegations that the pharmaceutical company paid inducements to physicians for writing prescriptions for the drugs Naprelan, Xodol, Fexmid and Dolgic.

Arkansas's Medicaid program, with federal matching funds added, will receive $74,684.97 as a result of the settlement.

"Our Medicaid Fraud department works every day to prevent actions that harm the program and cost taxpayers," McDaniel said. "I'm pleased that the states and federal government reached this settlement, which will reimburse Medicaid for this company's conduct."

The states and federal government alleged that from 2007 to 2009, VPI sales representatives made cash and in-kind payments to health care professionals to induce them to prescribe the drugs. The resulting prescriptions were paid for by state or federal programs such as Medicaid, Medicare, TRICARE, the U.S. Department of Veterans Affairs and the U.S. Department of Labor.

The settlement is based on an action filed in U.S. District Court in the Southern District of California.

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