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| Pfizer agrees record fraud fine | Pfizer agrees record fraud fine |
| (9 minutes later) | |
| US drugmaker Pfizer has agreed to pay $2.3bn (£1.4bn) in the largest healthcare fraud settlement in the history of the Department of Justice. | US drugmaker Pfizer has agreed to pay $2.3bn (£1.4bn) in the largest healthcare fraud settlement in the history of the Department of Justice. |
| Pfizer pleaded guilty to a criminal violation of the Food, Drug and Cosmetic Act for misbranding drugs. | Pfizer pleaded guilty to a criminal violation of the Food, Drug and Cosmetic Act for misbranding drugs. |
| It illegally promoted four drugs and caused false claims to be submitted to government healthcare programmes for uses that were not medically accepted. | It illegally promoted four drugs and caused false claims to be submitted to government healthcare programmes for uses that were not medically accepted. |
| US officials said Pfizer would have to enter a corporate integrity agreement. | US officials said Pfizer would have to enter a corporate integrity agreement. |
| It will be subject to additional public scrutiny by requiring it to make "detailed disclosures" on its website. | |
| Pfizer's general counsel said: "We regret certain actions taken in the past, but are proud of the action we've taken to strengthen our internal controls." | |
| "The size and seriousness of this resolution, including the huge criminal fine, reflect the seriousness and scope of Pfizer's crimes," said Mike Loucks, acting US attorney for the District of Massachusetts. | "The size and seriousness of this resolution, including the huge criminal fine, reflect the seriousness and scope of Pfizer's crimes," said Mike Loucks, acting US attorney for the District of Massachusetts. |
| The company faces a criminal fine of $1.195bn and a subsidiary company of Pfizer - Pharmacia & Upjohn - will forfeit $105m, totalling a criminal resolution of $1.3bn. | The company faces a criminal fine of $1.195bn and a subsidiary company of Pfizer - Pharmacia & Upjohn - will forfeit $105m, totalling a criminal resolution of $1.3bn. |
| The remaining $1bn fine was levied to resolve the allegations under the civil False Claims Act. | The remaining $1bn fine was levied to resolve the allegations under the civil False Claims Act. |
| Four drugs | Four drugs |
| The civil settlement also relates to allegations that Pfizer paid bribes to healthcare providers to induce them to prescribe four named drugs. These are Bextra, an anti-inflammatory drug, Geodon, an anti-psychotic drug, Zyvox, an antibiotic and Lyrica, an epilepsy treatment. | The civil settlement also relates to allegations that Pfizer paid bribes to healthcare providers to induce them to prescribe four named drugs. These are Bextra, an anti-inflammatory drug, Geodon, an anti-psychotic drug, Zyvox, an antibiotic and Lyrica, an epilepsy treatment. |
| "Although these types of investigations are often long and complicated and require many resources to achieve positive results, the FBI will not be deterred from continuing to ensure that pharmaceutical companies conduct business in a lawful manner," said Kevin Perkins, FBI assistant director, Criminal Investigative Division. | "Although these types of investigations are often long and complicated and require many resources to achieve positive results, the FBI will not be deterred from continuing to ensure that pharmaceutical companies conduct business in a lawful manner," said Kevin Perkins, FBI assistant director, Criminal Investigative Division. |
| The pharmaceutical firm said earlier this year that it would pay the fine "to put issues that diminish trust behind us". | The pharmaceutical firm said earlier this year that it would pay the fine "to put issues that diminish trust behind us". |
| Pfizer reported a 90% drop in profit to $268m in the fourth quarter of 2008, because of the $2.3bn legal settlement, indicating that the company was aware they would be paying this sum before the terms of the deal with the Department of Justice were announced. | Pfizer reported a 90% drop in profit to $268m in the fourth quarter of 2008, because of the $2.3bn legal settlement, indicating that the company was aware they would be paying this sum before the terms of the deal with the Department of Justice were announced. |