Pfizer to pay $325M fine to third party payers

|About: Pfizer Inc. (PFE)|By:, SA News Editor

Without admitting wrongdoing, Pfizer (PFE +0.3%) agrees to pay $325M to certain third party payers to settle allegations that it defrauded insurers and other healthcare benefit providers by marketing Neurontin for unapproved uses.

On April 21, the company agreed to pay $190M to settle litigation in New Jersey. The case was brought by Neurontin buyers who accused it of taking steps to keep cheaper generic versions of the drug off the market.

In May 2004 PFE agreed to pay $430M and plead guilty to criminal charges for illegally marketing Neurontin for unapproved uses.

The company acquired Neurontin when it bought Warner-Lambert in 2000.