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Drug Company Agrees to Settlement

Federal prosecutors say a Kentucky-based pharmacy has agreed to pay $9.25 million to settle allegations that it solicited and received kickbacks from a manufacturer in exchange for promoting a drug with nursing home patients.

Prosecutors announced Wednesday the settlement with Louisville-based PharMerica Corp. resolves claims that it received kickbacks from Abbott Laboratories in exchange for recommending that physicians prescribe the Abbott-manufactured drug Depakote.

The settlement partially resolves allegations in two whistleblower lawsuits filed in federal court in the western district of Virginia.

In 2012, Abbott pleaded guilty and agreed to pay $1.5 billion over allegations that it promoted Depakote for patients with dementia and autism — uses not approved by the Food and Drug Administration. The drug was approved for bipolar disorder and epilepsy.