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Allergan’s Warner Chilcott agrees to pay $125 million in False Claims, President & Three District Managers (former) also Face Criminal Charges

Allergan’s Warner Chilcott agrees to pay $125 million in False Claims, President & Three District Managers (former) also Face Criminal Charges

October 29, 2015

Allergan, Warner Chilcott US Sales LLC President (former) W. Carl Reichel was arrested on Thursday in Boston and charged with one count of conspiring to pay kickbacks where Allergan agreed to pay $125 million to resolve kickbacks to doctors to induce them to prescribe several of its drugs.  The United Stated Department of Justice, Boston is kicking ass and taking prisoners for the second time in as many months.

Allergan is best known for Botox and paying a $600 million in DOJ fines for off-label promotion and the popular Lap-Band which the Allergan sold to Apollo Endosurgery nearly two years ago for a suspiciously low $110 million.

If recent news of Allergan & Pfizer merging is factual, we’ll see a lot more DOJ activity with both companies, usually all lawsuits or a majority (even False Claims) are settled before a merger.  Grab some popcorn and settle in, this should get interesting.

Activis bought Allergan earlier this year, but companies operate under the more recognized Allergan name.  There are certainly patterns in fraud & Allergan, not unlike Johnson & Johnson demonstrates a pathological history of not recognizing the law and changing names to distance from their crimes.

Note to Media: Please recognize that there are likely limitations to how the DOJ writes the press release that the media does not have to adhere to those limitations when covering fraud.  The parent company, without shame, remorse, guilt or accountability  tries to distance from the crime by placing blame on the parent’s subsidiary.  This also helps the parent company regarding search engine SEO making it much harder for taxpayers to follow the fraud.

Media Formula for writing a Headline from a DOJ Press Release

Media formula for healthcare fraud headline:

Parent Company + Subsidiary + Executives (former) + Charge

(always put “former” after the person’s name or title not before, as these crimes were committed when they were active with the company)

Here are two examples taken from DOJ press releases: 

DOJ release reads:

Warner Chilcott Agrees to Plead Guilty to Federal Healthcare Fraud Scheme & Pay $125 Million to Resolve Criminal Liability & False Claims Act Allegations.

Media releases should read:

Allergan’s Warner Chilcott agrees to pay $125 million in False Claims, President & Three District Managers (former) also Face Criminal Charges

This way when people want to see fraud attributed to Allergan it’s easily indexed on search engines (this makes your job easier too!)

Allergan Warner Chilcott $125 million false claims fraud

Second example:

DOJ release reads:

Former Acclarent, Inc. Executives Charged with Securities Fraud & Crimes Related to Sale & Distribution of Medical Devices

Media releases should read: 

Johnson & Johnson’s, Ethicon’s, Acclarent Executives (former) Arrested & Charged with 18 Counts of Securities Fraud & Crimes Related to Medical devices

Johnson & Johnson Ethicon Acclarent Executives former charged with Securities fraud

1 Comment
  • There need to be more and more really big press releases like you describe so these major corporations, and their executives, get the idea that is actually a crime to harm and kill people And There Are Consequences! Go DOJ!

    Frankly I am stunned there really is action going on in this regard and I am happy!

    October 29, 2015 at 8:48 pm

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