Given the potential health risks of taking medication, regulations concerning advertising claims about drugs can be considerably more stringent than in other industries. When drug makers run afoul of those requirements, the penalties can be gigantic. New York Attorney General Erich Schneiderman’s office announced on Aug 6 that alongside 40 other states, NY has reached a settlement with Wyeth Pharmaceutical over alleged deceptive advertising practices related to one its flagship products.
In the deal, Wyeth, a subsidiary of Pfizer, has agreed to pay $35 million to settle allegations of improper marketing and promotion of the immunosuppressive drug Rapamune. Depending on the number of consumers impacted, states can expect to collect different totals; New York will recover $1.7 million. The settlement comes following a 2012 decision that left Wyeth on the hook for $491 million to settle civil and criminal liabilities over similar issues.