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$425 Million Cephalon Civil Settlement and Criminal Fine; In America's Largest
Date:9/29/2008

Biotechnology Medicaid Fraud Case; Qui Tam Whistleblower Attorney Brian P.

Kenney, Esq. Filed First Complaint With Client's Off-Label Marketing Allegations In 2003; Additional Complaints Were Filed; $375 Million Civil

Settlement, $50 Million Corporate Criminal Fine Today

PHILADELPHIA, Sept. 29 /PRNewswire/ -- Biotech drug manufacturer Cephalon, Inc. ("Cephalon") flouted federal regulations on a grand scale for years by off-label marketing its first three prescription drugs far beyond the cancer pain, epilepsy and narcolepsy specialists for whose patients those drugs had been FDA-approved. Instead, Cephalon focused its national marketing muscle on unapproved uses, targeting medical specialists with bigger patient populations, according to a Complaint filed in 2003 by Philadelphia qui tam whistleblower attorney Brian P. Kenney, Esq. The complaint was unsealed today with Cephalon's $375 million nationwide Medicaid fraud settlement and $50 million corporate criminal plea.

Kenney, lead partner of Philadelphia-based, Kenney Egan, McCafferty & Young, P.C., represents whistleblowers across the U.S. His whistleblower client is a former medical sales representative, area trainer and institutional representative for the Frazer, Pennsylvania-based drug manufacturer, one of Cephalon's original 27 sales hires in 1994. In 2003, on her behalf, Kenney brought the Government the first qui tam whistleblower Medicaid fraud allegations against Cephalon.

Kenney's filing, under seal as required by law, was the first complaint filed in the federal-state government investigation that resulted in today's national settlement and corporate criminal plea. A total of four whistleblower Complaints were unsealed today by the U.S. Attorney's Office for the Eastern District of Pennsylvania, along with the filing of a new federal Complaint, settlement agreement, and corporate integrity agreement, which settle all four whistleblower cases, Kenney explained.
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