Botox Found Guilty of Illegal Marketing and Promotion
September 16, 2010
Allergan, which manufactures the cosmetic medication Botox, has agreed to pay $600 million to settle a federal investigation into its marketing of the botulin-based drug.
The company will plead guilty to one misdemeanor charge of "misbranding" – meaning the company's marketing led physicians to use Botox for unapproved uses. These uses included treatment of headache, pain, spasticity and cerebral palsy in children.
According to ABC News:
“Allergan said it will pay $375 million in connection with the plea, which includes the forfeiture of $25 million in assets. Additionally, the company will pay $225 million in civil fines -- $210 million to the federal governments and the rest to several states -- related to the investigation, although the company denies liability for the civil claims.”