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Attorney General Marty Jackley

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Medicaid Settlement Reached with Elan


PIERRE, S.D.- Attorney General Marty Jackley announced today that South Dakota has joined with other states and the federal government in reaching an agreement in principle with Elan Corporation (Elan), a publicly traded company headquartered in Ireland. Allegations that Elan, through its North American subsidiary, Elan Pharmaceuticals, Inc. (EPI), improperly marketed its anti-epileptic drug, Zonegran, for off-label purposes. South Dakota‚Äôs share is $151,980.89. Elan will pay the states and the federal government a total of $101 million in damages and penalties to compensate Medicaid and various federal healthcare programs for harm suffered as a result of its conduct. 
In a related settlement, the federal government and states have separately agreed in principle to recover $11 million from Eisai, Inc., for allegedly continuing to improperly promote Zonegran until December of 2005, after it acquired the interests in Zonegran from Elan in April of 2004.  
The settlements are based on a qui tam case that was filed in the United States District Court for the District of Massachusetts by a private individual under state and federal false claims statutes.
The South Dakota Medicaid Fraud Control Unit and the South Dakota Department of Social Services assisted in recovering the settlement money.

FOR IMMEDIATE RELEASE:  Thursday, December 16, 2010 
CONTACT: Sara Rabern, (605) 773-3215