Warner Chilcott says U.S. elects not to intervene in qui tam action at this time


Warner Chilcott disclosed in a regulatory filing that on February 22 the company became aware that a qui tam action filed against the company was unsealed by order of the United States District Court for the District of Massachusetts. The qui tam action which was filed under seal on June 27, 2011, was brought by a former company sales representative on behalf of the United States, 26 states, and the District of Columbia under the Federal False Claims Act and state law equivalents to the Federal False Claims Act and alleges that the company violated Federal and state false claims acts through the promotion of its products Actonel and Atelvia. On February 19, the U.S. filed notice of its election not to intervene in the qui tam action at this time, the company said. In this notice, which was also unsealed pursuant to the court’s order entered on February 22, the U.S. indicated that its investigation of the allegations raised in the complaint is continuing and, as such, it was not able to decide, as of the court’s seal expiration deadline, whether to intervene in the action. The company has previously disclosed that beginning in February, the company, along with several current and former non-executive employees in its sales organization and certain third parties, received subpoenas from the U.S. Attorney for the District of Massachusetts concerning, among other things, sales and marketing activities relating to all of the company’s current key products. While the company has not yet been served with the qui tam complaint, it is reviewing the allegations in the complaint and intends to vigorously defend itself in the litigation when and if served, Warner Chilcott said.

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