The U.S. Department of Justice completed a deal with pharmaceutical company AstraZeneca where the drug company agreed to pay $520 million to settle a federal investigation into questionable marketing practices for its anti-psychotic drug, Seroquel.
The government had accused AstraZeneca of violating anti-kickback laws through its practice of paying doctors to refer Seroquel to patients while it also brought in additional money from government health care programs like Medicare and Medicaid. The pharmaceutical company was also accused of promoting favorable research on Seroquel’s effects which misled doctors and patients alike, while at the same time failing to disclose studies that showed Seroquel increased the risk of diabetes.
Currently there are over 25,000 pharmaceutical litigation claims against AstraZeneca alleging that Seroquel caused increased incidences of diabetes and weight gain. AstraZeneca’s aggressive marketing and promoting of Seroquel helped increase the prescription of the anti-psychotic drug among children and the elderly, oftentimes for indications or uses not approved by the Food and Drug Administration (FDA).