New York Paralegal Blog

NEW YORK - Attorney General Eric T. Schneiderman today announced a $3.1 million settlement with the major pharmaceutical company AstraZeneca, following allegations that it improperly marketed and promoted the antipsychotic drug Seroquel. The agreement is part of a record 37-state settlement totaling $68.5 million – the largest ever multi-state consumer protection-based pharmaceutical settlement. These practices violate consumer protection laws established to protect patients and ensure that health care providers are fully briefed on the medications available, including all known potential benefits and side effects. Attorney General Schneiderman, who has marked National Consumer Protection Week by highlighting a series of consumer-related actions, reiterated that consumer safety is a responsibility companies must also share, especially those marketing medication.

AstraZeneca LP and AstraZeneca Pharmaceuticals LP will pay $520 million to resolve allegations that AstraZeneca illegally marketed the anti-psychotic drug Seroquel for uses not approved as safe and effective by the Food and Drug Administration (FDA), the Departments of Justice and Health and Human Services’ Health Care Fraud Enforcement Action Team (HEAT) announced today. Such unapproved uses are also known as "off-label" uses because they are not included in the drug’s FDA approved product label. The Wilmington, Del.-based company signed a civil settlement to resolve allegations that by marketing Seroquel for unapproved uses, the company caused false claims for payment to be submitted to federal insurance programs including Medicaid, Medicare and TRICARE programs, and to the Department of Veterans Affairs, the Federal Employee Health Benefits Program and the Bureau of Prisons.