Valeant Pharmaceuticals, Inc. agrees to $1.875 million settlement with Commissioner
News: 2018 Press Release
SACRAMENTO, Calif. — Insurance Commissioner Dave Jones reached a $1.875 million settlement with Valeant Pharmaceuticals, Inc. relating to its former relationship with Philidor Rx Services LLC and claims for reimbursement or payment for Valeant products submitted by Philidor to California insurers.
"I am pleased that our fraud investigation of Valeant Pharmaceuticals has come to a successful conclusion," said Insurance Commissioner Dave Jones. "Pharmaceutical companies have a legal duty to make sure that they or their contractors are not submitting fraudulent claims for reimbursements."
Valeant's former relationship with Philidor, which has been widely reported on, was terminated by Valeant in late 2015, following allegations that, among other things, Philidor submitted fraudulent claims for reimbursement to insurance companies. Since terminating its relationship with Philidor, Valeant has replaced many members of its senior management.
The submission of fraudulent claims for reimbursement is illegal under the California Insurance Frauds Prevention Act (CIFPA).
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- Settlement and Release Agreement
- This investigation was commenced at the commissioner's own initiative, and there is no whistle blower lawsuit alleging a violation of Insurance Code section 1871.7 for the same misconduct.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.