Abbott Labs wrongly pushed Depakote for dementia care, will pay $1.5 billion

Deficit-reduction plan to gain $600 billion from lower provider payments and higher beneficiary prem

The company systematically promoted off-label use of the medication as a dementia treatment for nursing home residents. Abbott also paid kickbacks to physicians and long-term pharmacists to encourage its use, according to court records.

At a news conference Monday, U.S. Attorney Timothy Heaphy said the practice went beyond questionable practices by “some rogue sales representatives.” In fact, top officials at Abbott knew about and encouraged the misleading practice from 1998 to at least 2006.

The case includes a criminal fine and forfeiture of $700 million and civil settlements with the federal government and states totaling $800 million. The company also agreed to enter a five-year probationary period. Depakote is an anti-seizure and mood-stabilizing drug that is routinely prescribed for bipolar disorder.