Allergan Settles Claims on Warner Chilcott Sales, Marketing Practices
Allergan plc reports that its indirect subsidiary, Warner Chilcott Sales (US) LLC, has reached a resolution with the federal government, as well as 50 states and the District of Columbia, concluding the previously disclosed federal investigation into certain sales and marketing practices involving several Warner Chilcott products during the time period January 2009 through March 2013. In October 2013, Warner Chilcott plc, Warner Chilcott Sales’ indirect parent corporation, became a wholly owned subsidiary of Actavis plc. In March 2015, Actavis plc completed an acquisition of Allergan plc, and thereafter changed its corporate name to Allergan plc.
Under the settlement agreements, Warner Chilcott Sales will pay a total of approximately $102 million, plus interest, to the federal government and the states to resolve civil claims. The settlements will resolve claims regarding a range of alleged sales and marketing activities by Warner Chilcott Sales. In addition to the civil settlement, Warner Chilcott Sales agreed to plead guilty to a charge of healthcare fraud in violation of 18 U.S.C. Â§1347 related to certain of the company’s sales and marketing practices prior to its acquisition by Allergan. In connection with the criminal plea, Warner Chilcott Sales will pay a total of approximately $23 million in criminal fines and forfeiture amounts. The company previously recorded charges of approximately $125 million in connection with the government’s investigation.Following its acquisition of Warner Chilcott Sales, Allergan said it fully cooperated in the government’s investigation and in reaching these civil settlements and plea agreement.
“At Allergan we take seriously our responsibility and commitment to abide by all US and international laws that govern the sales, marketing, education and promotion of our products, and recognize the tremendous impact that this responsibility has on the customers and patients we serve,” said Brent Saunders, President and CEO of Allergan, in a company statement “Our company’s culture is deeply rooted in compliance, and we recognize the importance of a strong compliance program. We have focused on developing and implementing a best-in-class set of compliance policies and procedures, and we remain committed to running our business in full compliance with the regulations and high ethical standards we have set for Allergan.”
Allergan said it maintains an effective compliance program, led by a global chief compliance fficer who reports directly to Mr. Saunders and to the Board of Directors, whose remit includes global health care, anti-bribery/anti-corruption and privacy compliance. The independent Global Compliance Organization is responsible for defining the company’s corporate and business compliance standards, training and educating all employees on these standards, setting the compliance control framework, developing and implementing tools and resources to adhere to and monitor compliance as well as providing assurance services in the form of compliance audits and investigations.