May 18, 2007 Medicis Pharmaceutical
Medicis Pharmaceutical Corporation of Scotsdale Arizona has agreed to pay $9.8 Million Dollars to settle allegations that it violated the False Claims Act with respect to claims submitted to Medicaid.
Four former employees alleged that from approximately November 2001 through April 2004, Medicis sales personnel targeted pediatricians, urging the doctors to use Loprox as a treatment for diaper rash. Although Loprox is approved by the FDA for patients over 10 years of age, it is not a “medically accepted indication” for the treatment of diaper rash or other skin disorders of children under 10.
As part of the settlement, the former employee who filed the suit are to receive in excess of $1,078,00.00 as a reward for filing the claims.
See U.S. Dept of Justice Press Release 5/8/07