San Diego's Victory Pharma to pay $11.4 million to settle charges of paying kickbacks to doctors
The Justice Department announced in Washington today (December 27) that San Diego-based Victory Pharma Inc. has agreed to pay $11.4 million to resolve civil and criminal liability from its marketing of pharmaceutical drugs Xodol, Fexmid, and Dolgic. The government alleged that Victory promoted its drugs by paying kickbacks to doctors to get them to write prescriptions for Victor's products, including prescriptions for patients covered by Medicare and other federal health insurance programs. The kickbacks included tickets to sporting events and concerts, golf and ski outings, and dinners at expensive restaurants. The settlement resolves a whistleblower complaint by a former Victory salesman. Under a provision of the False Claims Act, the whistleblower, Chad Miller, will receive $1.7 million.