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DOJ Lists the Worst-Behaved Drug Companies of 2010

Posted Jan 25 2011 6:07pm

Congratulations, Allergan (AGN): The company paid the biggest settlement to the Department of Justice’s healthcare fraud and abuse program in 2010, $600 million for the unapproved, “off-label” promotion of Botox for headaches. 2010 was a banner year for bad behavior in the drug business, according to the DOJ. There were:

  • $2.5 billion in health care fraud judgments and settlements.
  • 1,116 new criminal health care fraud investigations.
  • 2,095 potential defendants in those cases.
  • 1,787 ongoing criminal health care fraud investigations pending.
  • 2,977 potential defendants in those cases.
  • 488 cases with criminal charges filed.
  • 931 actual defendants in those cases.
  • 726 defendants convicted of health care fraud-related crimes

The statistic that managers ought to pay most attention to is the one describing them. While I’ve criticized the DOJ in the past for talking a lot about prosecuting individual executives while not actually doing so, the DOJ reports that The Department of Health and Human Services’ Office of the Inspector General banned 3,340 individuals and entities from doing business with the federal government.

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