Indivior Solutions, False Statements, Virginia 2020
ABINGDON, Va. - In a move aimed at combating the opioid epidemic, Indivior Solutions, a subsidiary of Indivior Inc., was sentenced to pay $289 million in criminal penalties in connection with a previous guilty plea related to the marketing of the opioid-addiction-treatment drug Suboxone, the government announced today.
According to the plea agreement, Indivior Solutions admitted to making false statements to the Massachusetts Medicaid program (MassHealth) related to the relative safety of Suboxone Film, a version of Suboxone, around children. The company sought to convince MassHealth to expand Medicaid coverage of Suboxone Film in Massachusetts and sent MassHealth a misleading chart and false data indicating that Suboxone Film had the lowest rate of accidental pediatric exposure (i.e., children taking medication by accident) of all buprenorphine drugs in Massachusetts, when in fact it did not.
“Combating the opioid epidemic is a top priority for the federal government,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Civil Division. “We will hold drug manufacturers accountable when they make misrepresentations that could affect consumers’ access to opioid addiction treatments.”
Indivior Solutions pleaded guilty on July 24, 2020, to a one-count felony criminal information charging false statements relating to health care matters. The company, which employed marketing and sales personnel for the Indivior group of companies, admitted that sending the false and misleading information occurred in the context of marketing and promotional efforts directed at MassHealth, which were overseen by top executives.
On June 30, 2020, Indivior’s former CEO, Shaun Thaxter, pleaded guilty to a one-count misdemeanor information related to Indivior’s false and misleading representations to MassHealth. On October 22, 2020, the court sentenced Thaxter to a six-month term of incarceration and $600,000 in criminal fines and forfeiture.
When announcing the sentencing, Acting United States Attorney Daniel P. Bubar of the Western District of Virginia stated, “When a drug manufacturer claims to be part of the solution to the national opioid epidemic, we expect it to make honest representations to government officials, physicians and patients, who have to make crucial treatment decisions. Instead, Indivior made false statements about Suboxone’s safety to increase its sales. I’m proud of the close relationship we have with our federal and state partners that led to today’s important result.”
In total, the investigation and prosecution of Indivior Solutions and its parent companies, Indivior Inc. and Indivior plc, and two former Indivior executives (its CEO and Medical Director) and a resolution with Indivior’s former parent, Reckitt Benckiser Group plc, resulted in recoveries of more than $2 billion. Indivior Solutions will pay $289 million in criminal penalties and $600 million to resolve its civil and criminal liability, making a total of $889 million in penalties.
Suboxone, which contains the powerful opioid buprenorphine, is a drug product approved for use by recovering opioid addicts to avoid or reduce withdrawal symptoms while they undergo treatment for opioid-use disorder. Indivior Solutions admitted to making false statements related to the relative safety of Suboxone Film, a version of Suboxone, around children.
Key Facts: Defendant: Indivior Solutions; Crime: False Statements; State: Virginia; Year: 2020; Sentence: $289 million in criminal penalties
Key Facts
- State: Virginia
- Category: Drug Trafficking|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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