Pfizer Settlement: $23 Billion Payout Over Improper Marketing

by Jordan Yerman | September 2, 2009 at 12:51 pm

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The recent Pfizer settlement is the largest national settlement in US history. Pfizer paid out to the states of Massachussetts, Pennsylvania and Kentucky over deceptive marketing practices which led to overprescription of Pfizer's drugs, stemming from nine different lawsuits. Four of the lawsuits involved off-label marketing, which means marketing a drug as treating symptoms for which it has not been approved.

The rest of the lawsuits involved charges of kickbacks, wherein doctors would be paid by Pfizer to promote Pfizer drugs: this is against US federal law.

The suit alleged that the improper marketing practices resulted in over-prescribing of Pfizer’s drugs, and therefore an over-charging to Medicaid programs across the country. The Massachusetts slice of the money will go to the Massachusetts Medicaid Program.

There's a criminal penalty in there as well:

The criminal plea will resolve charges that the company illegally promoted the sales of Bextra, an anti-inflammatory drug which was later taken off the market due to health risks.

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