Shire To Pay Record-Setting Device FCA Settlement

The $350m settlement resolves False Claims Act allegations Shire and its subsidiaries used tactics including lavish meals, free medical equipment, unearned speaker payments and cash to encourage doctors to prescribe the company’s Dermagraft human skin substitute.

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Shire PLC and its subsidiaries will pay $350m to settle state and federal allegations the manufacturer paid kickbacks and used other illegal means to encourage providers to use its Dermagraft human skin substitute. The product was FDA-approved to treat diabetic foot ulcers.

This is the largest civil settlement to date in a device-related False Claims Act case, the Department of Justice said in announcing the Jan. 11 agreement.

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