Nevada Enters Into Settlement With Purdue Pharmaceuticals

September 18, 2007 -- Carson City, NV - Nevada Attorney General Catherine Cortez Masto announced today that her office has reached a settlement with The Purdue Frederick Company, Inc., a New York corporation, and Purdue Pharma, L.P., a Delaware limited partnership, which are associated entities engaged in the manufacture, marketing, and distribution of OxyContin, an extended-release form of oxycodone.

Under the terms of the settlement, the State of Nevada recovered $1,047,787.19 to recoup damages to the Nevada Medicaid program as well as damages for investigative costs and penalties.

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According to Medicaid Fraud Control Unit (“MFCU”) Director Tim Terry, the companies allegedly marketed OxyContin as a drug less subject to abuse, illicit use, and diversion, and as less likely to cause tolerance and withdrawal than other pain medications, even though the companies were aware that these claims were false and misleading.

“Drug companies that make false claims about their products must be held accountable, especially when those false claims lead to excessive costs to the state of Nevada’s Medicaid program which is funded by Nevada taxpayers,” said Attorney General Masto. “The money from this settlement will go to our state Medicaid program to help provide medical coverage for Nevada’s working poor and underprivileged children."

The civil settlement with the companies will also require them to enter into a Corporate Integrity Agreement with the Office of the Inspector General of the U. S. Department of Health and Human Services in order to monitor the company’s operations and ensure future compliance with all laws and regulations.

Source: Nevada Attorney General