logo
Share SHARE
FONT-SIZE Plus   Neg

Abbott Reaches Settlement Over Depakote Sales Practices - Quick Facts

Abbott Laboratories (ABT) Monday reached a settlement with U.S. authorities to resolve all outstanding issues regarding a probe of past sales practices relating to its neurologic medication Depakote.

As part of the settlement, Abbott will pay $800 million to resolve civil allegations split among federal and state governments, $700 million for a criminal penalty, and $100 million to states to resolve consumer protection matters. Abbott said the amounts were earlier reserved in anticipation of today's agreement.

Abbott said the settlement with federal and 49 state authorities, plus the District of Columbia, results from a four-year-old investigation into past sales activities that began in 1998 involving Depakote.

The settlement is subject to approval by the Federal Court in the Western District of Virginia.

As part of the resolution, Abbott has agreed to plead guilty to one misdemeanor violation of the Food, Drug and Cosmetic Act for misbranding.

The company also agreed to certain other conditions of settlement, including the maintenance of specified compliance measures and annual certification regarding its state of compliance by its CEO and Board of Directors during a five-year probationary period.

Abbott is to separate into two publicly traded companies by year's end. The company said the compliance measures and certification requirements will transfer to the research-based pharmaceutical company, AbbVie, upon separation, as the obligations relate to the U.S. pharmaceutical business.

Abbott will also enter into a Corporate Integrity Agreement, or CIA, with the Office of Inspector General of the U.S. Department of Health and Human Services. The CIA will govern Abbott's compliance program for a period of five years and builds upon the company's existing comprehensive compliance program. The CIA will also transfer to AbbVie upon separation.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Google is planning to significantly expand a carpool service on its navigational app Waze, according to a report in the Wall Street Journal. The move indicates the company is edging closer to a potential clash with ride-hailing service Uber Technologies Inc. Private equity firm Sycamore Partners has won the bankruptcy auction for the e-commerce business and intellectual property of U.S. women's apparel retailer The Limited with a bid of $26.8 million, Reuters reported, citing people familiar with the matter. A U.S. bankruptcy court judge must now approve the sale to Sycamore Partners. French telecommunications operator Orange SA reported Thursday higher net profit in its fiscal year 2016 mainly on income from discontinued operations. Operating income, meanwhile, declined, despite increased revenues. For fiscal 2017, the company projects higher adjusted EBITDA, a key earnings metric.
comments powered by Disqus
Follow RTT