Pharmaceutical Company Agrees to Pay $3.5 Million to Resolve Allegations of Violating False Claims Act

Pacira Pharmaceuticals Inc. will pay $3.5 million to resolve allegations that it paid kickbacks to doctors in the form of bogus research grants to induce them to prescribe its analgesic Exparel. The allegations arose from a whistleblower suit filed under the False Claims Act. From Dec. 1, 2012, through April 30, 2015, Pacira paid disguised kickbacks in the form of research and other grants to healthcare providers and institutions. Pacira intended these payments to induce sales of its newly-launched local analgesic, Exparel, to the targeted physicians and their respective hospitals. The research grants in question were typically initiated by Pacira sales representatives or marketing executives, who discussed internally their sales goals in connection with the grant. Pacira also required that Exparel be placed on formulary at the physician’s institution before awarding any research grant.

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