Nebraska has joined with other states in reaching a settlement with Forest Laboratories and Forest Pharmaceuticals to resolve allegations they provided kickbacks to doctors for endorsing their drugs.
Attorney General Doug Peterson announced the $38 million settlement will return more than $5 million to the states for fraud against their Medicaid programs, with $30,000 going to Nebraska.
Federal law prohibits compensating doctors to induce them to prescribe medication. The states alleged Forest paid physicians and provided meals in a speakers program endorsing Bystolic, used to treat congestive heart failure, Savella, a non-narcotic pain reliever, and Namenda, used to treat dementia, from 2008 to 2011.
A whistle-blower initiated the legal action, first filed in the federal District Court for the Eastern District of Wisconsin under the federal False Claims Act and various state false claims statutes.