Court Orders Pfizer to Pay $2.3 Billion for Illegal Drug Promotion

Summary: Pfizer was ordered to pay record-breaking $2.3 billion penalty by a federal court after allegedly repeating illegal promotions that involves junkets in high-end resorts for doctors, free golf memberships, and massages.

The amount is the largest ever settlement paid by a drug company for violating federal rules.

A federal court on Wednesday has ordered giant pharmaceutical company Pfizer to pay a record-breaking $2.3 billion in penalties for illegal drug promotions. Prosecutors said that the world’s largest drug manufacturer has repeatedly cheated its way into hospitals through “dirty” tactics like giving doctors free golf memberships, massages, and junkets.

The Federal prosecutors stressed that the high-penalty against the drug manufacturer would serve as a warning to other drug companies. The $2.3 billion settlement was the largest ever imposed to a drug company while the $1.2 billion criminal award was the largest in US criminal court.

Based on records, it was the fourth time that Pfizer was charged with the violation, prompting authorities to tag the company as one of the “repeat offenders,” after allegedly marketing 13 different drugs including Viagra, Lipitor, and Zoloft.

Prosecutors said that Pfizer, as part of its illegal marketing strategy, would invite doctors to “meetings” at high-end resorts and other locations around the country, all expense paid.

Massachusetts US Attorney Mike Loucks said that the doctors during the junkets were very engrossed over golf games and massages.

The attorney also said that Pfizer continues to violate the law by negotiating deals with doctors even if it is still in settlement hearings on past violations.