Victory Pharma, a San Diego based drug company, has agreed to pay a $11.4 million settlement to the federal government after battling allegations of kickbacks paid to doctor. The drug company has been cited for attempting to induce these doctors to write prescriptions for it's line of painkillers and relaxants.
The settlement comes after Victory Pharma allegedly provided doctors with tickets to sporting events, concerts, plays, sporting events, vacations, dinners, and even trips to strip clubs, according to court documents. These kickbacks, or gifts, were an attempt to “romance” the doctors into writing certain prescriptions for patients covered under Medicare, Tricare, and other federal health insurance programs.
Although the corporation admits to no wrongdoing, they reached settlement in order to “avoid the delay, uncertainty, inconvenience and expense” of court proceedings.
A former sales representative for Victory Pharma will receive $1.7 million, as a result of the settlement, provided by the whistleblower protection section of the False Claims act.