Ohio Settles With Avanir Pharmaceuticals On Kickback Allegations

COLUMBUS, OH — A pharmaceutical company accused of promoting a kickback scheme to push its medications has agreed to settle with several states, including Ohio, and the federal government. Two doctors and two company sales reps have also been indicted for engaging in the kickback scheme.

Avanir Pharmaceuticals has agreed to pay $103 million per the settlement, including $7 million earmarked for Medicaid programs. The company was accused of improperly marketing Nuedexta for government health care programs. Ohio will receive about $3.7 million from the settlement.

“Kickbacks are to ethics like a magnet to a compass – you lose your direction,” Ohio Attorney General Dave Yost said. “Avanir’s crafty marketing scheme steered doctors toward corruption, but even worse, it put patients at risk for improper care.”

Nuedexta is used to treat pseudobulbar affect (PBA), a condition characterized by involuntary and sudden episodes of uncontrollable laughing and crying.

In October 2010, Nuedexta was approved by the FDA for treatment of PBA. Nuedexta was not approved for any other uses, Yost's office said. However, Avanir was accused of marketing Nuedexta to medical professionals for uses other than PBA. Yost's office said the "improper activity" was alleged to have occurred between October 2010 through December 2016.

Avanir then instructed its sales reps to provide false information to medical professionals, Yost's office said. Those same representatives are also accused of providing kickbacks to doctors in exchange for prescribing Nuedexta.

Four men are accused of engaging in the kickback conspiracy in Northeast Ohio. All four are charged with conspiracy to solicit, receive, offer and pay health care kickbacks.

The other states involved in the settlement are California, Georgia, New York and Texas.