Federal and state regulators have reached a settlement with Abbott Laboratories (NYSE:ABT) over charges that the company marketed its anti-seizure medication Depakote for conditions not approved by health officials.
Under the agreement, Abbott will enter a guilty plea to a misdemeanor violation of the Food, Drug and Cosmetic Act. The company will also participate in a government oversight program for five years. Abbott will also pay a $700 million criminal fine, $800 million in state civil charges and $100 million to state consumer regulatory agencies.
Whistleblowers who filed suit against Abbott’s will share $84 million from the settlement.
Regulators called Abbott’s behavior intentional and systematic.
Abbott’s settlement is the largest for drug manufacturer marketing claims since Pfizer (NYSE:PFE) settled with the government in 2010 for $2.3 billion.
Later this year, Abbott will split into two publicly traded companies: AbbieVie, which will make drugs, and Abbott, which will produce other medical products. Abbott shares closed up 10 cents at $62.51 on Monday.