Criminal Prosecution of Jazz Pharmaceuticals, Inc.
Jazz Pharmaceuticals, Inc., (Jazz) paid $20 million to resolve criminal and civil allegations relating to the illegal marketing practices of its wholly-owned subsidiary, Orphan Medical, Inc., (Orphan). As part of this resolution, Orphan pled guilty to felony misbranding, in violation of the Food, Drug, and Cosmetic Act (21 U.S.C. §§ 331(a) and 333(a)(2)) in connection with its illegal promotion of the prescription medication Xyrem, also known as gamma-hydroxybutyrate or "GHB," for unapproved uses. GHB is a powerful and fast-acting central nervous system depressant that has been subject to abuse as a recreational drug and is classified by HHS as a "date rape" drug.
Source: HHS Health Care Fraud and Abuse Control Program, Annual Report for FY 2010
This article was posted on July 15, 2012.