Cashing in on dementia patients: drugmaker to pay $116 million in fraud settlement

A pharmaceutical company that whistleblowers alleged paid doctors to prescribe its main drug and urged salespeople to push it as a way to control unruly dementia patients will pay more than $100 million to settle government fraud allegations.

The Department of Justice announced the settlement with Avanir Pharmaceuticals on Thursday, four years after these whistleblowers alerted the federal government that they believed the company was paying kickbacks to doctors and illegally marketing its main drug, Nuedexta -- particularly in nursing homes. Each of these three whistleblowers will receive a portion of the millions Avanir has agreed to pay.

In addition to the settlement with Avanir, Justice Department officials announced they had indicted two doctors and two of the drugmaker's salespeople for their alleged involvement in a "kickback conspiracy." read more »

Boeing 737 Max Safety System Was Vetoed, Engineer Says

A senior Boeing engineer filed an internal ethics complaint this year saying that during the development of the 737 Max jet the company had rejected a safety system to minimize costs, equipment that he felt could have reduced risks that contributed to two fatal crashes.

Boeing has provided the complaint, which was reviewed by The New York Times, to the Department of Justice as part of a criminal investigation into the design of the Max, according to a person with knowledge of the inquiry who requested anonymity given the ongoing legal matter. Federal investigators have questioned at least one former Boeing employee about the allegations, said another person with knowledge of the discussions who similarly requested anonymity. read more »

FDA now says impurity level in Zantac and other antacids is too high

The FDA has changed its tune about the levels of a suspected carcinogen in Zantac and generic ranitidine drugs. Instead of just a little NDMA with a very low risk, the agency says its new “early, limited testing” has found unacceptable levels of NDMA in ranitidine samples. read more »

Regulators fine New York's BGC Partners $25 million for forex options fraud

U.S. and New York regulators on Wednesday fined two units of BGC Partners Inc $25 million to settle charges their brokers concocted fake trades to fraudulently induce clients to transact in foreign exchange options at unfair prices.

Regulators said that in 2014 and 2015, BGC and GFI brokers reported hundreds of thousands of fake bids and offers for emerging markets foreign exchange options, a practice known as “flying.”

The brokers allegedly did this to create an illusion of greater market liquidity and, sometimes, narrower spreads, to encourage clients to trade on their electronic platforms when they otherwise would not have. read more »