Healthy Skepticism Library item: 16907

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Loftus P
Forest Labs In Tentative Pact To Settle US Civil Probe >FRX
The Wall Street Journal 2009 Nov 9
http://english.capital.gr/dj/news.asp?details=849549

Full text:

Forest Laboratories Inc. (FRX) has reached a tentative settlement over government civil allegations that it improperly marketed antidepressants and a thyroid drug, but a government criminal probe continues.

Forest disclosed in a regulatory filing Monday it reached an agreement in principle in May to settle the civil aspects of U.S. federal and state probes. Penalties in the civil settlement are covered by a $170 million reserve Forest created in April.

But Forest also disclosed Monday that the May agreement “does not resolve the government’s ongoing investigation into potential criminal law violations” related to the antidepressants Celexa and Lexapro, and thyroid drug Levothroid. Forest said it’s continuing to cooperate with the criminal investigation.

A Forest spokesman said the company is still in discussions with the government, and declined to comment further or provide details of the settlement.

Forest began disclosing a few years ago that the government was looking into its marketing practices. In February, the U.S. Justice Department unsealed a lawsuit in U.S. District for the District of Massachusetts alleging Forest marketed the antidepressants for unapproved uses in children, and paid kickbacks to induce doctors to prescribe the drugs.

Shares of New York-based Forest fell 3 cents to $28.64.