Office of the Attorney General
Attorney General Conway Announces $42.5 m Settlement with Alpharma Inc. over Fraud Allegations
Attorney General Jack Conway announced today that Kentucky has joined other states and the federal government to reach an agreement in principle with pharmaceutical manufacturer, Alpharma Inc., to settle fraud allegations. The settlement involves allegations that Alpharma caused false or fraudulent claims for Kadian, a sustained release morphine sulfate product for management of severe pain, to be submitted to the Medicaid program.
Under the agreement, Alpharma has agreed to pay the participating states and the United States $42.5 million, plus interest. The Medicaid programs nationwide will receive approximately $19.2 million of the total settlement. Kentucky’s total portion of the settlement is $281,699.89. Medicaid is funded jointly by the federal and state governments.
Kentucky alleged that during the period of January 1, 2000 through December 29, 2008, Alpharma offered and paid for training programs, consulting forums, research grants, speakers’ bureaus and made or disseminated false statements about the safety and efficacy of Kadian, all of which was done to induce health care providers to prescribe Kadian.
The investigation was initiated by a lawsuit filed under the qui tam provisions of the False Claims Act. This action is pending in the United States District Court for the District of Maryland.
A team representing the National Association of Medicaid Fraud Control Units (NAMFCU) participated in the investigation and conducted settlement negotiations with Alpharma on behalf of the states.