Texas AG Sues Sanofi for Illegal Kickbacks to Doctors
Summary
The Texas Attorney General has filed a lawsuit against Sanofi-Aventis U.S. LLC for allegedly providing illegal kickbacks to healthcare providers through "Free Nurse Program" and "Support Services Program." The state is seeking over $1,000,000 in monetary relief and an injunction.
What changed
The Texas Attorney General's office has filed a lawsuit against Sanofi-Aventis U.S. LLC, alleging the company violated the Texas Health Care Program Fraud Prevention Act by providing illegal kickbacks to healthcare providers. These kickbacks, in the form of nurse services and support programs, were allegedly designed to incentivize doctors to prescribe Sanofi's drugs over alternatives, influencing patient treatment for chronic illnesses. The state is seeking over $1,000,000 in monetary relief, including civil penalties, and an injunction to halt further unlawful activities.
This enforcement action highlights the risks associated with pharmaceutical marketing practices that could be construed as inducements. Healthcare providers and drug manufacturers should review their programs to ensure compliance with anti-kickback statutes. Non-compliance can lead to significant civil penalties, injunctions, and reputational damage. The lawsuit seeks to ensure that patient care decisions are based on medical necessity rather than financial incentives.
Source document (simplified)
Attorney General Ken Paxton filed a major lawsuit against Sanofi-Aventis U.S. LLC (“Sanofi”) for providing illegal kickbacks to providers to incentivize them to prescribe Sanofi’s drugs over alternatives.
Sanofi is a multibillion-dollar company that makes drugs that treat diabetes, multiple sclerosis, auto-immune disorders, and hemophilia, among others. To entice providers to prescribe these drugs, Sanofi created a “Free Nurse Program” and “Support Services Program”—services that constituted in-kind remuneration to providers in violation of the Texas Health Care Program Fraud Prevention Act (“THFPA”).
The unlawful scheme to offer providers with nurse services and reimbursement support services were intentionally done to influence which drugs Texans receive. Because some of the Sanofi drugs are used to treat chronic illnesses, these kickbacks have established years-long sources of revenue for Sanofi even if the drugs prescribed weren’t the best option for the patient.
“The quality of Texans’ healthcare should never be determined by Big Pharma bribery,” said Attorney General Paxton. “Sanofi is in clear violation of Texas law that prohibits the exact type of kickback scheme that the company is actively engaging in. The people of Texas deserve to know that the drugs they’re being prescribed are being given to them to best address their medical needs.”
Attorney General Paxton is seeking monetary relief of over $1,000,000, including civil penalties, and seeking an injunction to stop any further unlawful acts. Attorney General Paxton has previously sued Sanofi and Bristol-Myers Squibb for failing to disclose that their drug Plavix did not work effectively for certain patients. Attorney General Paxton has also sued Eli Lilly for providing illegal kickbacks.
To read the lawsuit, click here.
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