Abstract

http://ssrn.com/abstract=1195714
 
 

Footnotes (147)



 


 



Punishing Pharmaceutical Companies for Unlawful Promotion of Approved Drugs: Why the False Claims Act is the Wrong Rx


Vicki W. Girard


Georgetown University Law Center

August 1, 2008

Journal of Health Care Law & Policy, Vol. 12, pp. 119-158, 2009
Georgetown Law and Economics Research Paper No. 10-18
Georgetown Public Law Research Paper No. 10-61

Abstract:     
This article criticizes the shift in focus from correction and compliance to punishment of pharmaceutical companies allegedly violating the Food, Drug, & Cosmetic Act (FD&C Act) prohibitions on unlawful drug promotion. Traditionally, the Food and Drug Administration (FDA) has addressed unlawful promotional activities under the misbranding and new drug provisions of the FD&C Act. Recently though, the Justice Department (DOJ) has expanded the purview of the False Claims Act to include the same allegedly unlawful behavior on the theory that unlawful promotion "induces" physicians to prescribe drugs that result in the filing of false claims for reimbursement. Unchecked and unchallenged, the DOJ has negotiated criminal and civil settlements with individual pharmaceutical companies ranging from just under ten to hundreds of millions of dollars. In part, companies settle these cases to avoid the potential loss of revenue associated with the exclusion regime administered by the U.S. Department of Health and Human Services, under which companies risk losing the right to participate in federal health care programs. Even more disturbing, these settlements allow DOJ to circumvent judicial review of its enforcement approach, preventing any type of accountability for its legal theories or procedures. This article discusses the traditional enforcement methods employed by the FDA as well as the more recent DOJ prosecutions under the False Claims Act. Although it concludes that the FD&C Act should provide the sole means for prosecuting unlawful drug promotion, it also suggests that when prosecuting pharmaceutical companies under either Act, the government must avoid the temptation to mine companies for large settlements in lieu of developing a more coherent and responsible enforcement strategy.

Number of Pages in PDF File: 41

Keywords: FDA, Drugs, Labeling, Promotion, Pharmaceutical, False Claims Act, DOJ

working papers series


Download This Paper

Date posted: August 4, 2008 ; Last revised: June 2, 2013

Suggested Citation

Girard, Vicki W., Punishing Pharmaceutical Companies for Unlawful Promotion of Approved Drugs: Why the False Claims Act is the Wrong Rx (August 1, 2008). Journal of Health Care Law & Policy, Vol. 12, pp. 119-158, 2009; Georgetown Law and Economics Research Paper No. 10-18; Georgetown Public Law Research Paper No. 10-61. Available at SSRN: http://ssrn.com/abstract=1195714 or http://dx.doi.org/10.2139/ssrn.1195714

Contact Information

Vicki W. Girard (Contact Author)
Georgetown University Law Center ( email )
600 New Jersey Avenue, NW
Washington, DC 20001
United States
Feedback to SSRN


Paper statistics
Abstract Views: 807
Downloads: 130
Download Rank: 124,196
Footnotes:  147

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.313 seconds