Kos Pharmaceuticals favorably resolves allegations of antikickback violations and off label marketing

Client(s) Kos Pharmaceuticals, Inc.

Jones Day client Kos Pharmaceuticals, Inc. was accused in multiple qui tam lawsuits throughout the United States of various misconduct during the years 2001-2006. Most notably, the suits alleged that Kos implemented sales programs that violated the Anti-Kickback Act and marketed one of its best selling drugs off-label. Based on these allegations, the Department of Justice intervened in the qui tam civil claims against Kos as provided by the False Claims Act. The DOJ also investigated criminal claims under the Anti-Kickback Statute.

In December 2010, Kos reached resolution on these allegations with both the criminal and civil divisions of the Department of Justice, as well as the attorneys general of all 50 states. The Civil Division has dismissed all pending qui tam suits, and Kos resolved the criminal allegations by entering into a Deferred Prosecution Agreement in the Middle District of Louisiana. Under that agreement, if Kos successfully completes the six-month deferred prosecution period, all criminal charges against the company will be dismissed.