The Texas Attorney General’s Office announced a $19.9 million settlement it reached with international pharmaceutical company, Novartis Pharmaceutical Corporation. The settlement resolves False Claims Act allegations that Novartis used deceptive marketing tactics to sell Elidel, a topical skin cream used to treat eczema. Novartis allegedly promoted Elidel to treat babies without disclosing the risks and side effects of the drug. The FDA has not approved Elidel for children under two years old.
Of the $19.9 million settlement, the Texas State government will receive about $6.6 million. The whistleblower in this qui tam case, Donald R. Galmines, will receive between a 15 to 30% share of the settlement. The remaining portion of the settlement will go to the federal government.
The attorneys at Tycko & Zavareei commend the collaboration between the federal and state governments to reach this successful settlement. For more information on health care fraud and blowing the whistle on companies engaging in it, contact Tycko & Zavareei today for a free consultation.