Abbott (ABT) Settles with U.S. Over Depakote; Will Pay ~$1.6B in Fines

May 7, 2012 12:46 PM EDT
Abbott (NYSE: ABT) has reached a settlement with U.S. federal and 49 state authorities, plus the District of Columbia, to resolve all outstanding issues regarding a previously disclosed investigation of past sales and marketing practices relating to its neurologic medication Depakote. The settlement results from a four-year-old investigation into past sales activities that began in 1998 involving this product. Abbott cooperated fully with the government during its investigation.

Abbott will pay $800 million to resolve civil allegations split among federal and state governments, $700 million for a criminal penalty, and $100 million to states to resolve consumer protection matters. These amounts were previously reserved in anticipation of today's agreement.

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