Cephalon Faces Liability From Integrity Agreement Violation: Court

A federal district court in Pennsylvania ruled July 21 that a pharmaceutical company’s failure to report alleged drug kickbacks and off-label promotion schemes as required by a corporate integrity agreement could give rise to “reverse false claim” liability (United States ex rel. Boise v. Cephalon, Inc., 2015 BL 232385, E.D. Pa., 2:08-cv-00287-TON, 7/21/15).

The U.S. District Court for the Eastern District of Pennsylvania denied drugmaker Cephalon Inc.'s motion to dismiss reverse false claim allegations from a trio of whistle-blowers who said Cephalon hid its illegal promotional activities from the government to avoid paying fines enumerated in a ...