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background, byline)
By Jonathan Stempel
NEW YORK, June 9 (Reuters) - The United States has joined a
whistleblower lawsuit accusing the Salix unit of Valeant
Pharmaceuticals International Inc VRX.TO of paying illegal
kickbacks to doctors and submitting fraudulent reimbursement
claims to the government.
In a complaint made public on Thursday in the U.S. District
Court in Manhattan, the government said Salix knowingly paid
kickbacks to doctors, including monetary payments and lavish
meals at restaurants such as Le Bernardin and Nobu, to induce
them to prescribe seven of its drugs and medical devices.
The government said the scheme worked, causing thousands of
false claims for payment to be submitted to federal health care
programs including Medicare, Medicaid and a program overseen by
the Department of Veterans Affairs.
Salix's alleged improper activity occurred from January 2009
to December 2013, well before Valeant in April 2015 acquired the
company for more than $11 billion.
Spokespeople for Valeant and Salix declined to provide
immediate comment.
The lawsuit deepens the troubles facing Laval, Quebec-based
Valeant, whose stock has fallen on intense scrutiny and concern
over its business and accounting practices and high debt load.
Salix is accused in the lawsuit of violating the federal
False Claims Act, for which the government is seeking triple
damages and civil penalties, and a federal anti-kickback
statute, for which the government also seeks damages.
The lawsuit combines two cases previously brought by
physician Steven Peikin and four former Salix employees.
False Claims Act lawsuits allow whistleblowers to bring
cases on behalf of the U.S. government, and share in any
recoveries.