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Forest Labs to Pay $313 Million to Settle Charges

Forest Laboratories has finalized a deal to pay $313 million in fines and a settlement. The company faced allegations that it gave kickbacks to doctors who prescribed its antidepressants.

According to the U.S. Justice Department, Forest offered cash, expensive meals, and entertainment to doctors who prescribed Lexapro and Celexa. Authorities also alleged that Forest promoted Celexa for use in children. Celexa is only approved for adults and a study showed it did not work any better than a placebo for children.

According to Business Week:

“Under the deal, Forest said its Forest Pharmaceuticals Inc. unit pleaded guilty to a felony charge of obstructing an agency proceeding ... The unit has also pleaded guilty to two misdemeanor violations of the Food and Drug Administration Act.”

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