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Alpharma Pays $42.5 Million to Settle Whistleblower Allegations Regarding Kadian

March 24, 2010

Whistleblower Debra Parks filed suit against Alpharma in 2006 under the qui tam (or whistleblower) provisions of the False Claims Act alleging that the company illegally marketed its morphine-based drug, Kadian.  Now the company has agreed to pay $42.5 million to settle with Parks and the government for allegedly paying health care providers kickbacks for prescribing Kadian and making misrepresentations about “the safety and efficacy of the drug.”

According to DoJ, “the settlement will be split between the federal government and various states, with the United States receiving roughly $33.6 million to resolve the federal claims and the states receiving approximately $8.9 million to settle their respective claims.”  Ms. Parks will recieve a whistleblower award of over $5 million.

To report healthcare fraud, contact Frohsin & Barger.

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