Connecticut will receive approximately $6 million of the $1.6 billion that Abbott Laboratories will pay in federal and state civil and criminal settlements surrounding allegations that it improperly marketed the neurologic medication Depakote for off-label uses, The Waterbury Republican-American reports.
The agreement settles claims that the company's alleged conduct resulted in false claims to Medicaid and other federal healthcare programs, Rep-Am.com reports.
Abbott will pay $800 million to resolve civil allegations split among federal and state governments, $700 million in criminal penalties and $100 million to states to resolve consumer protection matters, the North Chicago company said.
The net state share for Connecticut Medicaid claims is more than $3.9 million, and Connecticut will receive an additional $499,000 for state-funded benefit programs administered by the state.
The FDA approved Depakote, an anti-seizure and mood-stabilizing drug, in 1983 to treat certain seizures in adults and children over age 10.
Those lawsuits alleged that Abbott encouraged and trained its salespeople to market Depakote off-label to nursing-home directors, geriatric doctors and other long-term care providers.
The company also gave doctors illegal kickbacks to talk about off-label uses of the drug to boost sales, according to the whistle-blower suits filed in federal courts in Illinois, Virginia and the District of Columbia.