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<\/p>\nSacramento, CA…California Attorney General Rob Bonta today announced a $300 million settlement against Indivior plc and Indivior Inc. (collectively, \u201cIndivior\u201d) resolving claims that Indivior falsely and aggressively marketed Suboxone, resulting in improper use of state Medicaid funds. Suboxone is a drug product approved for use by recovering opioid addicts to avoid or reduce withdrawal symptoms while they undergo treatment. California was a part of the team of states that negotiated the settlement which will be paid to all 50 states, the District of Columbia, and Puerto Rico. Indivior will pay a total of $300 million to resolve various civil fraud allegations impacting Medicaid and other federal healthcare programs, with $203,735,800 going to Medicaid. The amount paid to the states, plus D.C., and Puerto Rico, will be $90,682,800.00 for\u00a0their\u00a0Medicaid recovery. California\u2019s share of the settlement is $1,644,217.97 in restitution and other recoveries.<\/p>\n
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\u201cOur country is battling a global pandemic in the midst of an ongoing opioid epidemic. Doctors and the public should be able to trust that what a company says their product can do is the truth, especially when the company claims it can be used during the treatment of something as serious as opioid addiction,\u201d\u00a0said Attorney General Bonta<\/b>. \u201cToday\u2019s settlement should send a message that false marketing and improper use of California\u2019s Medicaid dollars will have costly consequences.\u201d<\/p>\n
Indivior Inc. is a Richmond, Virginia based company and a wholly owned subsidiary of British drug manufacturer, Indivior plc, which was formerly known as Reckitt Benckiser Pharmaceuticals, Inc.\u00a0In 2019, DOJ was a part of the team of states that resolved similar allegations against Reckitt Benckiser Group plc and Reckitt Benckiser LLC \u2013 both companies that are part of the corporate structure that later spun off Indivior as an independent entity.\u00a0The 2019 settlement resulted in a total civil settlement of $700 million, of which $400 million was paid to the federal and state governments to resolve Medicaid fraud allegations.\u00a0California\u2019s share was $2,853,221.01.<\/p>\n
In today\u2019s settlement, it\u00a0is\u00a0alleged that Indivior falsely marketed Suboxone, a drug approved by the Food and Drug Administration (FDA) to treat opioid addiction. Suboxone and its active ingredient, buprenorphine, are powerful\u00a0opioids, and companies that unlawfully promote medication-assisted opioid addiction treatments such as Suboxone risk misuse, abuse, diversion and accidental exposure.<\/p>\n
Today\u2019s settlement resolves allegations that from 2010 through 2015, Indivior, directly or through its subsidiaries:<\/p>\n
The civil settlement resolves six whistleblower lawsuits against Indivior pending in federal courts in Virginia and New Jersey. In addition, Indivior Solutions pleaded guilty last year to a one-count felony information and, together with its parent companies Indivior Inc. and Indivior plc agreed to pay $289 million to resolve the company\u2019s criminal liability. Last year, Indivior plc\u2019s former CEO Shaun Thaxton and Indivior\u2019s former medical director both\u00a0pleaded guilty and were\u00a0each sentenced on single counts of violations of the Federal Food, Drug and Cosmetic Act, for causing the distribution of misbranded Suboxone Film into interstate commerce.<\/p>\n
Today\u2019s settlement was negotiated by the California Department of Justice\u2019s Division of Medi-Cal Fraud and Elder Abuse (DMFEA), working with a team of other states. Through the DMFEA, DOJ works to protect Californians by investigating and prosecuting those who perpetuate fraud on the Medi-Cal program. DMFEA also investigates and prosecutes those responsible for abuse, neglect, and fraud committed against elderly and dependent adults in the state. DMFEA regularly works with whistleblowers, the California Department of Health Care Services, and\u00a0state and federal\u00a0law enforcement agencies to investigate and prosecute\u00a0Medi-Cal provider fraud and elder abuse, and fraud by entities other than Medi-Cal providers when their actions result in fraudulent claims.<\/p>\n