AmerisourceBergen to pay $625 million in U.S. civil fraud settlement

The Department of Justice announced Monday that AmerisourceBergen has agreed to pay $625 million to resolve civil fraud charges. The settlement increases the wholesaler's total payout to $885 million over its repackaging and distribution of prefilled syringes that were not approved by FDA.

The Department of Justice announced Monday that AmerisourceBergen has agreed to pay $625 million to resolve civil fraud charges. The settlement increases the wholesaler's total payout to $885 million over its repackaging and distribution of prefilled syringes that were not approved by FDA. AmerisourceBergen acknowledged that from January 2001 to January 2014, its Medical Initiatives Inc. pharmacy business in Alabama delivered millions of syringes for cancer patients undergoing chemotherapy that contained drugs prepared in an unsterile setting. AmerisourceBergen would harvest "overfill" from the original vials of drugs used to fight adverse effects of chemotherapy, authorities said, which enabled the company to create more doses than it purchased and generate at least $99.6 million of additional profit. AmerisourceBergen was also accused of double billing and providing kickbacks to encourage doctors to buy drugs through the prefilled syringe program. Nearly $100 million of the payout will go to state Medicaid programs, according to New York Attorney General Barbara Underwood. AmerisourceBergen said the settlement reflects its recognition that some practices at the now-shuttered Medical Initiatives unit "were not consistent with AmerisourceBergen's approach to corporate compliance."