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SD Pharmacy to Pay $11.4M to Settle Kickback Allegations
Alleged kickbacks included tickets to sports events, spa, golf and ski outings and expensive dinners
Dec 28, 2012
The U.S. Justice Department says a specialty pharmacy based in San Diego has agreed to pay about $11.4 million to resolve allegations it used kickbacks to induce doctors to write prescriptions for its products.
The Justice Department says under an agreement announced Thursday, Victory Pharma Inc. agreed to pay a criminal forfeiture of $1.4 million to resolve anti-kickback statute allegations and more than $9.9 million to resolve false-claims allegations.
The alleged kickbacks included tickets to sports events, concerts and plays, spa, golf and ski outings, expensive dinners and other events.
Authorities also say Victory encouraged sales representatives to schedule paid "preceptorships" in which they shadowed doctors in their offices to induce them to prescribe Victory's products.
A company phone listing could not be immediately located.