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Allergan subsidiaries end federal investigation with $38M settlement

Allergan PLC said its indirect subsidiaries Forest Laboratories LLC and Forest Pharmaceuticals Inc. agreed to pay a total of $38 million to the U.S. federal government and state Medicaid programs to resolve all civil claims and end a federal investigation into certain sales and marketing practices involving three products.

In addition to agreements with state Medicaid programs, the settlements also resolve a related qui tam litigation pending in the U.S. District Court for the Eastern District of Wisconsin.

The investigation — which involved Forest's hypertension drug Bystolic, Alzheimer's treatment Namenda and fibromyalgia treatment Savella, during the time period Jan. 1, 2008, to Dec. 31, 2011 — looked into Forest's alleged lack of adequate controls over payments made to physicians for conducting speaker programs.

Allergan said the the agreement will not affect its ongoing business with any customers.