DRUGMAKER PAYS STATE MORE THAN ONE MILLION DOLLARS TO SETTLE MARKETING VIOLATIONS

Attorney General Kelly A. Ayotte has announced that New Hampshire has finalized its share of a national Medicaid settlement with The Purdue Frederick Company and Purdue Pharma, associated entities engaged in the manufacture, marketing, and distribution of Oxycontin, a time-release formulation of oxycodone. The civil settlement resolved allegations that Purdue engaged in misbranding violations under federal law by falsely claiming that Oxycontin was less addictive, less subject to abuse and diversion, and less likely to cause tolerance and withdrawal problems than other pain medications.

New Hampshire’s share of the settlement was $1,053,000. The amount paid by Purdue on behalf of all of the state Medicaid programs was $130 million. The national Medicaid settlement with states arose from a four-year criminal investigation conducted by the United States Attorney’s Office for the Western District of Virginia, in conjunction with other state and federal law enforcement agencies. That federal case was concluded earlier this year when Purdue Frederick and three management-level individuals entered criminal guilty pleas for the misbranding violations. The states’ settlement team included representatives from the attorney general offices of New York, Virginia, North Carolina, and New Hampshire.

“Medicaid is an important program for the people of New Hampshire and my Office will continue to vigorously investigate abuse of the program,” said Attorney General Kelly Ayotte. “This settlement helps ensure that New Hampshire’s taxpayers pay only their fair share of the cost of the Medicaid program.”

For further information, contact Senior Assistant Attorney General Jeff Cahill, Director of the Medicaid Fraud Unit, at (603) 271-1246.