PIERRE, S.D.- Attorney General Marty Jackley announced today that South Dakota has joined with other states and the federal government to settle allegations that Salix Pharmaceuticals, Inc., paid kickbacks to improperly promote various drugs and medical devices. Salix, a Delaware corporation headquartered in Raleigh, North Carolina, will pay the states and the federal government $54 million dollars, of which $16,578,000.00 will go to the Medicaid programs to resolve civil allegations that Salix’s unlawful promotion of Xifaxan, Apriso, Relistor, MoviPrep, OsmoPrep, Solesta, and Deflux caused false claims to be submitted to government health care programs.

The total portion of the settlement amount recovered by South Dakota is $73,902.71, of which $46,977.04 will be retained by the federal government as the federal Medicaid share. The remaining $26,925.67 will go to the state general fund to offset alleged Medicaid damages in this case.

Specifically, the agreement resolves allegations that the company paid kickbacks, including honoraria and meals, to health care professionals as an inducement to recommend, promote and prescribe certain Salix products.  

A National Association of Medicaid Fraud Control Units (NAMFCU) Team participated in the investigation and conducted the settlement negotiations with Salix on behalf of the states. The Team included representatives from the Offices of the Attorneys General for the states of Ohio, New York, California, Indiana and Wisconsin. The South Dakota Medicaid Fraud Control Unit and the South Dakota Department of Social Services assisted in recovering the settlement money.