Allergan unit to plead guilty to fraud, to pay $125 million

30 October 2015

Botox maker Allergan (NYSE: AGN), said its unit Warner Chilcott US Sales LLC has agreed to pay $125 million and plead guilty to felony healthcare fraud charges to resolve the US federal government charges that it bribed the doctors in return for prescription of several of its drugs.

The settlement has concluded the charges that from 2009 to 2013, Warner Chilcott illegally marketed seven drugs. The lawsuit alleged that the company engaged in fraudulent marketing of several drugs, including the ulcerative-colitis treatment Asacol, osteoporosis treatment Actonel, and birth-control pill Loestrin.

The US Department of Justice also announced the former Warner Chilcott president Carl Reichel was arrested Thursday and charged with one count of conspiring to pay kickbacks.

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