Victory Pharma, Inc. Agrees to Settle Qui Tam Case

San Diego-based pharmaceutical company, Victory Pharma, Inc. (“Victory”), has agreed to pay $11.4 million to settle civil and criminal charges that it violated the federal Anti-Kickback Statute and $9.9 million to resolve allegations that it violated the False Claims Act. The charges stem from Victory’s marketing of the drugs Naprelan, Xodol, Fexmid and Dolgic to doctors treating participants in taxpayer-funded healthcare programs such as Medicare, Medicaid and Tricare.

According to the qui tam complaint filed by whistleblower Chad Miller, a former Victory sales representative, Victory allegedly paid illegal kickbacks to physicians in the form of tickets to various entertainment and sporting events, golf and spa outings, and meals at lavish restaurants to induce them to prescribe Victory’s drugs.

Under the qui tam provisions of the False Claims Act, the whistleblower will receive $1.7 million of the settlement amount as his reward.