Biovail guilty plea, settlement announced

by bvernia | September 17th, 2009

The US Attorney’s Office in Boston announced the guilty plea of Biovail Pharmaceuticals, LLC, a NJ-based company, to kickback and conspiracy charges relating to its drug, Cardizem, L.A. According to the press release and the information, the company implemented a program called “PLACE,” under which it paid physicians for enrolling patients and completing a brief questionnaire.

Biovail Pharm., LLC, pleaded guilty to a single count of conspiracy (under 18 USC § 371), a single count of paying kickbacks to physicians (under 42 USC § 1320a-7(b)(2)(A)), paid a criminal fine of $22.2 million, and an additional $2.4 million in a civil settlement of False Claims Act allegations. The press release states that “[t]he investigation of this matter did not implicate the current management team of Biovail Corporation in the conduct described in the Information.”

The case was handled by AUSA Sara Bloom in Boston.

Full disclosure: While working at Covington & Burling LLP, I helped represent Biovail.

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