The court case United States ex rel. Ryan v. Endo Pharmaceuticals has reached a settlement. The case started on allegations of wrongdoing on the behalf of Endo Pharmaceuticals. The state found that Endo Pharmaceuticals had promoted their prescription pain relief patch for purposes that were not approved by the FDA. The resulting settlement has the drug company paying $192.7 million, with $600,000 of those settlement dollars going to the state of Connecticut. After the settlement, all allegations against the drug company will be resolved.
Endo Pharmaceuticals is located not far from the state of Connecticut, based in Delaware and headquartered in Pennsylvania. The FDA had approved the company’s drug Lidoderm for post-herpetic neuralgia pain, but the company marketed the drug for individuals suffering from lower back pain and other chronic pains.
Connecticut State Attorney General George Jepsen stated that the wrongdoing also affected the state’s Medicaid program. “Improper marketing of drugs leads to false and fraudulent claims against our Medicaid program," said Jepsen in a statement. "We take allegations of fraud and abuse very seriously, and we will continue to work to hold accountable those who seek to defraud our taxpayers.”
The CEO of Endo Pharmaceuticals, Rajiv De Silva, also released a statement on the matter. “The company takes its responsibility to patients, health-care providers and our shareholders very seriously," said De Silva. "We are pleased to resolve this matter and are confident that we have robust programs in place to assist us in satisfying our legal and regulatory agreements. We are committed to a company culture that supports the conduct of our business in a compliant and ethical manner.”