This settlement arose from a qui tam case filed in 2000 by John David Foster, a National Account Manager for a Pfizer subsidiary.
The Practice: Concealment of Best Price
In October 2002, Pfizer agreed to a settlement of $49 million arising from a FCA case alleging concealment of Best Price for Lipitor, the top-selling cholesterol drug. In 1999, Warner-Lambert, which was subsequently acquired by Pfizer, gave $250,000 in "unrestricted educational grants" to an HMO based in New Orleans in exchange for the HMO's promise to maintain coverage of Lipitor. At least five other HMOs/MCOs and two PBMs were receiving similar grants from Warner-Lambert. These "educational grants" allegedly amounted to discounts that Warner-Lambert failed to include in its Best Price reports for Lipitor.
The Whistleblower
The whistleblower who brought this scheme to light was John David Foster, a former Warner-Lambert National Account Manager, whose duties included convincing managed care organizations to include Lipitor on their formularies. After raising his concerns, Mr. Foster was placed on administrative leave.
Mr. Foster's qui tam suit was filed in April 2000. Pfizer settled the matter two and one half years later for $49 million. Mr. Foster was awarded $5.9 million, which amounted to 21.3 percent of the total federal recovery.
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