"Selling, general and administrative expense includes $1.5 billion of litigation reserves related to ongoing settlement discussions in the previously disclosed investigation by the U.S. Department of Justice..."
(PRWEB) October 31, 2011
The Consumer Justice Foundation, a for-profit corporation that provides free online resources to consumers regarding how to deal with insurance companies and awareness regarding the dangers of prescription medication hereby alerts the public that Abbott Laboratories, which is the manufacturer of Depakote, has recorded a $1.5 billion charge on its third quarter financial report that’s being set aside to help fund the potential Depakote settlement for claims made by the United States Department of Justice involving Depakote's off-label uses that were allegedly illegal.
This $1.5 billion charge comes as the United States Department of Justice investigates allegations that Abbott Laboratories for alleged marketing of Depakote, which has been approved for treatment of epilepsy and migraine headaches, to be used for such off-label conditions as agitation and aggression in the elderly. While the investigation is not yet complete, Abbott Laboratories has chosen to set these funds aside as the government investigation moves towards a conclusion. The investigation came about when the Department of Justice entered into a Depakote whistleblower lawsuit that is now on the docket in the Western District of Virginia Federal Court. The name of the case is the United States of America et al v. Abbott Laboratories and the docket number is 1:09cv51.
Abbott Laboratories specifically noted the $1.5 billion charge in its third quarter earnings statement and also explained that the charge was, "Selling, general and administrative expense includes $1.5 billion of litigation reserves related to ongoing settlement discussions in the previously disclosed investigation by the U.S. Department of Justice, through the U.S. Attorney for the Western District of Virginia, related to Depakote. The discussions are ongoing, and until concluded, there can be no certainty about definitive resolution."
This news comes as Abbott Laboratories has been involved in allegations of Depakote side effects as well as this ongoing government investigation, reached its peak sales amount in 2007 when it generated $1.7 billion in revenue. However, drug manufacturers such as Abbott Laboratories are generally not allowed to market medications for off-label, which means not specifically approved uses. Doctors may use some discretion with their prescriptions, but the Department of Justice has decided that an investigation into this matter is warranted, and Abbott Laboratories has decided that setting aside these funds was an advisable step to take.
About the Consumer Justice Foundation
The Consumer Justice Foundation, whose Web site is located at http://www.consumerjusticefoundation.com, is a public resource that’s been built and maintained by a group of concerned professionals who want to provide general information for consumers regarding the potential dangers involved with the use of Depakote while pregnant. This resource is not to be considered as medical or legal advice, which should only be dispensed by a licensed medical doctor or a Depakote lawyer.