Sanofi SA Agrees to Pay USD 109 Million to Settle Kickback Allegations-DJ

Dow Jones reported that two units of Sanofi SA agreed to pay USD 109 million to resolve allegations that they violated the False Claims Act by giving physicians free units of a knee injection in an effort to induce them to buy and prescribe the product. The settlement also resolves allegations that the subsidiaries, Sanofi-Aventis U.S. Inc. and Sanofi-Aventis U.S. LLC, submitted false average sales price reports for the knee injection, Hyalgan, that failed to account for free units distributed. The government alleged that the false reports, which were used to set reimbursement rates, caused government programs to pay inflated amounts for Hyalgan and a competing product. The settlement with the French pharmaceutical manufacturer resolves a whistleblower lawsuit filed by former sales representative Mr. Mark Giddarie, who will receive USD 18.5 million as his share of the government’s recovery.