Abbott ‘Engaged’ in Talks to Settle Depakote Lawsuit, U.S. Tells Judge - Bloomberg

Abbott Laboratories (ABT) and the U.S. are “engaged in active settlement discussions” of the government’s lawsuit alleging the company improperly marketed its drug Depakote, Justice Department lawyers said in court papers.

The U.S. asked the judge overseeing the suit to halt proceedings until July 8, postponing a May 31 scheduled filing of an amended complaint by Justice Department lawyers and allowing settlement discussions to continue. The U.S. also asked the court to consolidate four related false claims cases.

“The short extension would allow the parties to determine if a negotiated resolution is possible, which could reduce the demand on judicial resources,” Timothy Heaphey and Daniel Bubar, Justice Department lawyers, wrote in a May 20 filing. “Consolidating the actions would avoid having nearly identical filings made in four different actions.”

The lawsuits brought by whistleblowers claim that Abbott Park, Illinois-based Abbott marketed Depakote, an epilepsy drug, for unapproved uses including agitation and aggression in patients with dementia, autism, sexual compulsion and other disorders. The U.S. joined the False Claims Act suits in February, according to court dockets. More than 25 states also sued Abbott over marketing practices for Depakote.

Adelle Infante, an Abbott spokeswoman, didn’t immediately return a call for comment.

The case is U.S. ex rel. Spetter v. Abbott Laboratories, 1:10-cv-00006, U.S. District Court, Western District of Virginia (Abingdon).

To contact the reporter on this story: Margaret Cronin Fisk in Southfield, Michigan, at mcfisk@bloomberg.net.

via bloomberg.com

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