Abbott Labs agrees to $1.6 billion Depakote settlement

New York City, NY, United States (AHN) – Drug giant Abbott Laboratories had plead guilty and agreed to pay $1.6 billion over allegations that it promoted Depakote, an anti-seizure drug, for uses not approved by the Food and Drug Administration.

At a new conference Monday at the Justice Department, U.S. Attorney Timothy Heaphy said that the top levels of Abbott Lab carried out a strategy of systemically marketing the drug for purposes other than what federal regulators had intended from 1998 to at least 2006.

The case includes a criminal fine and forfeiture of $700 million, and civil settlements with federal and state governments totaling $800 million.

Depakote is an anti-seizure and mood stabilizing drug used to treat bipolar disorders.

Abbott, based in Illinois, said it is happy to resolve the matter, adding that it takes its responsibly to patients and health care providers seriously.

The company also agreed, as part of the settlement, to a five-year probationary period that is designed to ensure that there is no repeat of the company’s illegal conduct.

Shortly before the closing bell on Wall Street Monday, shares of Abbott Labs were up a few cents at $62.61.

---

---