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Franklin v. Parke-Davis

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316:. In 1999, the government declined, and the case moved forward. The defendants sought to have the complaint dismissed, arguing that the causal link between any representations made by Parke-Davis sales representatives and reimbursements for off-label Neurontin prescriptions was too remote. Furthermore, Warner-Lambert argued that Franklin could only prove the pharmaceutical company's liability by showing that Parke-Davis sales liaisons made fraudulent misrepresentations about the drug, as opposed to merely engaging in truthful off-label promotion. 348:, resulting in a $ 240 million criminal fine. Civil damages under the False Claims Act were paid out to the federal government in the amount of $ 83.6 million, and damages paid out to the states totaled $ 106.4 million. Relator David Franklin was awarded one of the highest shares ever under the False Claims Act, 29.5% of the settlement, in recognition of his important role in exposing the illicit marketing scheme. Pfizer agreed to institute a corporate compliance program as part of the settlement. Also as part of the settlement the 28: 238:, to be used only when the first medication had not brought the epileptic seizures entirely under control. Warner-Lambert executives found the potential revenue in that indication was too low, and decided to promote Neurontin for additional indications, for which the drug was not approved by the FDA and for which there was little to no evidence, including 327:
motion to dismiss the lawsuit. Judge Saris found that, if it could be proven that the off-label marketing of Neurontin caused doctors to prescribe the drug and submit prescriptions to Medicaid, then the company would indeed be liable under the False Claims Act. In addition, Judge Saris found that the
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worse, and his supervisor's dismissal of the report, was a key factor in his decision to leave Parke-Davis in July 1996 after only four months of employment. He also reported being told by a supervisor that his career would be threatened or ended if he continued to raise objections, and this is what
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for prescribing Neurontin, including expensive meals, stays at luxury resorts, and cash payments and that Parke-Davis hired ad agencies and marketing firms to produce articles about gabapentin describing the drug's emerging uses and recruited physicians and paid them to sign their names to the ghost
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Franklin's suit proposed a novel theory, that Warner-Lambert had perpetrated a fraud against the federal government by causing doctors and patients to submit claims for reimbursement to Medicaid that Medicaid should not pay for, since by law, Medicaid only pays for treatments that are either
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submission of false Medicaid claims was a foreseeable result of Warner-Lambert's marketing scheme. The case established for the first time that drug companies could be held liable under the False Claims Act for off-label promotion of pharmaceutical products.
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impacts the randomized controlled studies conducted by pharmaceutical companies to test the efficacy of their products. Ultimately, the parties reached a settlement agreement of $ 430 million to resolve all civil claims and criminal charges stemming from the
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announced that it had reached an agreement with Warner-Lambert and Pfizer. Warner-Lambert agreed to pay $ 430 million to resolve criminal and civil liability related to the off-label promotion of
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promotion of drugs could cause Medicaid to pay for prescriptions that were not reimbursable, triggering False Claims Act liability. The case was also significant in exposing the degree to which
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After four months of employment at Parke-Davis, Franklin became disillusioned by what he believed to be the company's illegal marketing practices in connection with sales of the drug
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Since the settlement in 2004, whistleblowers and the federal government have prosecuted numerous off-label promotion cases under the False Claims Act using this case as a precedent.
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The suit remained sealed for three years while the Department of Justice decided if it would intervene and take over the case, which it had the right to do under the
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Our Daily Meds: How the Pharmaceutical Companies Transformed Themselves into Slick Marketing Machines and Hooked the Nation on Prescription Drugs
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like Franklin, were hired to conduct this marketing. Franklin also alleged that physicians and other health care providers were paid illegal
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U.S. ex rel. Franklin v. Parke-Davis, Div. of Warner-Lambert Co., No. CIV.A.96–11651PBS, 2003 WL 22048255, at *1 (D. Mass. Aug. 22, 2003)
345: 553: 465:"Press Release: Warner-Lambert to Pay $ 430 Million to Resolve Criminal & Civil Health Care Liability Relating to Off-Label Promotion" 429: 947: 337: 698:
Hogan & Hartson LLP. June 2003. FDA Update: Government Files "Statement Of Interest" in Neurontin Off-Label Promotion Case
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to recommend the use to institutions, and paying people to write about the drug in any positive context including in
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Enforcement Related to Off-Label Marketing and Use of Drugs and Devices: Where Have We Been and Where Are We Going?
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approved by the FDA, or are otherwise "medically accepted" (as evidenced, for instance, by being included in an
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Subsequent research reported that the wrongful promotion of the drug was planned by integrating it into
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was established to fund public programs to raise awareness of problems with pharmaceutical advertising.
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Off-label promotion of pharmaceutical products which causes false claims for payment under the federal
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United States of America ex rel. David Franklin v. Parke-Davis, Division of Warner-Lambert Company
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Kesselheim, AS; Darby, D; Studdert, DM; Glynn, R; Levin, R; Avorn, J (December 2011).
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The Dark Side of the Boom: The Peculiar Dilemma of Modern False Claims Act Litigation
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complaint. At the time of the settlement in May 2004, it represented one of the
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False Claims Act Liability for Off-Label Promotion of Pharmaceutical Products
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finally prompted him to quit and hire a Boston attorney, Thomas M. Greene.
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United States District Court for the District of Massachusetts cases
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Franklin v. Parke-Davis: First Off-Label Case Under False Claims Act
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Journal of Health & Life Sciences Law 2(2):73-108. January 2009
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largest False Claims Act recoveries against a pharmaceutical company
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led to a 2015 court decision that changed the FDA's approach to
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List of largest pharmaceutical settlements in the United States
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United States District Court for the District of Massachusetts
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had approved Neurontin as a secondary course of treatment for
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United States District Court for the District of Massachusetts
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Court Forbids F.D.A. From Blocking Truthful Promotion of Drug
631:"Whistleblower charges drug company with deceptive practices" 554:"Examination of the evidence for off-label use of gabapentin" 319:
In an opinion handed down on August 22, 2003, District Judge
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In August 1996, Franklin and attorney Thomas Greene filed a
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F.D.A. Deal Allows Amarin to Promote Drug for Off-Label Use
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Melody Petersen for the New York Times. March 12, 2003
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Motion to dismiss granted in part, denied in part, 147
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List of off-label promotion pharmaceutical settlements
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Andrew Pollack for the New York Times. 7 August 2015
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agreed with David Franklin, denying Warner Lambert's
250:. Members of the Parke-Davis sales team, including 184:hired in the spring of 1996 in a sales capacity at 137: 127: 122: 104: 89: 84: 72: 62: 54: 44: 34: 20: 893:Katie Thomas for the New York Times. 8 March 2016 731:. Penn State Law Review, Vol. 110, pp. 41-68, 2005 615:Doctor Explains Why He Blew the Whistle at Pfizer 166:(which bought Warner-Lambert in 2000) under the 377:, supporting consultants and members of medical 114:program is a valid theory of recovery under the 777:Rutkow, Lainie; Teret, Stephen (October 2010). 624: 622: 8: 609: 607: 605: 478:Krautkramer, Christian J. (June 1, 2006). 439: 437: 272:stating that Neurontin had made a child's 192:, the court for the first time recognized 26: 17: 850: 809: 694: 692: 654: 497:10.1001/virtualmentor.2006.8.6.hlaw1-0606 495: 467:. US Department of Justice. May 13, 2004. 459: 457: 455: 453: 447:, New York: Sarah Crichton Books (2008). 852:10.7326/0003-4819-145-4-200608150-00008 421: 350:Consumer & Prescriber Grant Program 303:approved list of drugs and their uses 7: 346:Federal Food, Drug, and Cosmetic Act 480:"Neurontin and Off-Label Marketing" 400:Litigation around the marketing of 211:in U.S. history, and was the first 154:is a lawsuit filed in 1996 against 232:Food and Drug Administration (FDA) 14: 162:Company, and eventually against 542:26 J.L. & Health 181 (2013) 933:2003 in United States case law 213:off-label promotion settlement 1: 833:Steinman, Michael A. (2006). 265:written articles as authors. 718:Page accessed August 8, 2014 375:Continuing medical education 215:under the False Claims Act. 176:. The suit was commenced by 839:Annals of Internal Medicine 629:Lenzer J (March 22, 2003). 402:ethyl eicosapentaenoic acid 964: 948:Fraud in the United States 684:147 F. Supp. 2d 39 573:10.18553/jmcp.2003.9.6.559 404:(branded as "Vascepa") by 359: 274:attention deficit disorder 248:attention-deficit disorder 811:10.1377/hlthaff.2011.0370 686: (D. Mass. 2001). 268:According to Franklin, a 142: 109: 25: 714:August 10, 2014, at the 647:10.1136/bmj.326.7390.620 679:Franklin v. Parke-Davis 151:Franklin v. Parke-Davis 21:Franklin v. Parke-Davis 230:In December 1993, the 727:Stephanie M. Greene 590:on September 17, 2010 387:letters to the editor 338:Department of Justice 336:On May 13, 2004, the 293:in Boston under the 410:off-label marketing 389:, and managing the 383:academic literature 943:Off-label drug use 561:J Manag Care Pharm 525:2016-03-04 at the 518:Joseph JN, et al. 484:The Virtual Mentor 406:Amarin Corporation 219:Factual background 172:provisions of the 538:David S. Torborg 443:Melody Petersen, 289:complaint in the 147: 146: 955: 938:Drug advertising 897: 891: 885: 879: 873: 872: 854: 830: 824: 823: 813: 789: 783: 782: 774: 768: 762: 756: 750: 744: 738: 732: 725: 719: 705: 699: 696: 687: 681: 675: 669: 668: 658: 626: 617: 611: 600: 599: 597: 595: 589: 583:. Archived from 558: 552:Mack, A (2003). 549: 543: 536: 530: 516: 510: 509: 499: 475: 469: 468: 461: 448: 441: 432: 426: 325:summary judgment 314:False Claims Act 295:False Claims Act 252:medical liaisons 244:bipolar disorder 198:publication bias 190:summary judgment 174:False Claims Act 158:, a division of 143:False Claims Act 123:Court membership 116:False Claims Act 30: 18: 963: 962: 958: 957: 956: 954: 953: 952: 913: 912: 901: 900: 892: 888: 880: 876: 832: 831: 827: 804:(12): 2318–27. 791: 790: 786: 776: 775: 771: 763: 759: 751: 747: 739: 735: 726: 722: 716:Wayback Machine 706: 702: 697: 690: 677: 676: 672: 628: 627: 620: 612: 603: 593: 591: 587: 556: 551: 550: 546: 537: 533: 527:Wayback Machine 517: 513: 477: 476: 472: 463: 462: 451: 442: 435: 427: 423: 418: 379:advisory boards 368: 360:Main articles: 358: 334: 283: 221: 58:August 22, 2003 12: 11: 5: 961: 959: 951: 950: 945: 940: 935: 930: 925: 915: 914: 911: 910: 908: 906: 904: 899: 898: 886: 874: 825: 798:Health Affairs 784: 769: 757: 745: 733: 720: 700: 688: 670: 618: 601: 544: 531: 511: 490:(6): 397–402. 470: 449: 433: 420: 419: 417: 414: 357: 354: 333: 330: 321:Patti B. Saris 282: 279: 220: 217: 182:microbiologist 178:David Franklin 160:Warner-Lambert 145: 144: 140: 139: 135: 134: 132:Patti B. 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Supp. 2d 63:Docket nos. 917:Categories 594:August 10, 416:References 332:Settlement 861:0003-4819 342:Neurontin 256:kickbacks 240:migraines 225:Neurontin 194:off-label 869:16908919 820:22147859 767:at *4-*5 765:Franklin 753:Franklin 741:Franklin 712:Archived 665:12649230 581:14664664 523:Archived 506:23234671 307:kickback 236:epilepsy 138:Keywords 112:Medicaid 80:22048255 73:Citation 656:1125531 287:qui tam 281:Lawsuit 204:qui tam 169:qui tam 105:Holding 55:Decided 928:Pfizer 867:  859:  818:  682:, 663:  653:  579:  504:  356:Impact 309:laws. 164:Pfizer 755:at *1 743:at *4 588:(PDF) 557:(PDF) 393:as a 258:as a 76:2003 35:Court 865:PMID 857:ISSN 816:PMID 661:PMID 596:2014 577:PMID 502:PMID 364:and 246:and 180:, a 847:doi 843:145 806:doi 651:PMC 643:doi 639:326 635:BMJ 569:doi 492:doi 919:: 863:. 855:. 841:. 837:. 814:. 802:30 800:. 796:. 691:^ 659:. 649:. 637:. 633:. 621:^ 604:^ 575:. 563:. 559:. 500:. 486:. 482:. 452:^ 436:^ 412:. 397:. 385:, 242:, 227:. 98:39 78:WL 871:. 849:: 822:. 808:: 667:. 645:: 598:. 571:: 565:9 508:. 494:: 488:8 118:.

Index


United States District Court for the District of Massachusetts
1:96-cv-11651
WL
F. Supp. 2d
39
Medicaid
False Claims Act
Patti B. Saris
Parke-Davis
Warner-Lambert
Pfizer
qui tam
False Claims Act
David Franklin
microbiologist
Parke-Davis
summary judgment
off-label
publication bias
qui tam
largest False Claims Act recoveries against a pharmaceutical company
off-label promotion settlement
Neurontin
Food and Drug Administration (FDA)
epilepsy
migraines
bipolar disorder
attention-deficit disorder
medical liaisons

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