U.S. says Shire subsidiaries to pay $350 million to settle false claims act allegations

Reuters
A sign sits in front of Shire's manufacturing facility in Lexington, Massachusetts July 18, 2014. REUTERS/Brian Snyder

WASHINGTON (Reuters) - Shire PLC subsidiaries will pay $350 million to settle U.S. federal and state False Claims Act allegations related to unlawful methods to push “Dermagraft,” a treatment for diabetic foot ulcers, the U.S. Justice Department said in a statement on Wednesday.

"The settlement resolves allegations that Dermagraft salespersons unlawfully induced clinics and physicians with lavish dinners, drinks, entertainment and travel; medical equipment and supplies; unwarranted payments for purported speaking engagements and bogus case studies; and cash, credits and rebates, to induce the use of Dermagraft," it said.

(Reporting by Washington Newsroom; Editing by Chizu Nomiyama)