BizJournals Portfolio
Sep 01 2010 6:05pm EDT

Deep Frown Lines

Pharmaceutical giant Allergan Inc. on Wednesday agreed to pay $600 million to settle a federal case involving the marketing of Botox.

Allergan has been the subject of a multi-year investigation in Atlanta over the use of Botox that started in January of 2000.

Irvine, Calif.-based Allergan has agreed to plead guilty to a single misdemeanor “misbranding” charge covering the period 2000 through 2005 and pay the government $375 million. This misbranding charge is known as a strict liability offense, and does not involve false or deceptive conduct.

In addition, Allergan has agreed to pay $225 million to resolve civil claims asserted by Department of Justice under the civil False Claims Act.

The criminal resolution is subject to approval by the federal court for the Northern District of Georgia in Atlanta, and the civil settlement is contingent upon such approval.

Allergan was charged with marketing Botox for treatment of headache, pain, overactive bladder and spasticity through a plan that included providing physicians with "free" reimbursement services and coaching doctors to use a muscle spasm code to obtain reimbursement.


The Atlanta Business Chronicle covers business news in the Atlanta area.

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