CBI Clears Profits of Canadian Pharmacy Billionaire Barry Sherman

UPDATE: According to a report from The Canadian Press, Barry Sherman’s Apotex has paid $100 million and agreed to provide documents and emails as part of an agreement to assist the Justice Department probe….

CBI Clears Profits of Canadian Pharmacy Billionaire Barry Sherman

UPDATE: According to a report from The Canadian Press, Barry Sherman’s Apotex has paid $100 million and agreed to provide documents and emails as part of an agreement to assist the Justice Department probe.

Original Story:

Barry Sherman’s Canadian pharmaceutical company has agreed to pay nearly $100 million and give documents and emails to the U.S. Justice Department to address allegations that it paid bribes and kickbacks to doctors to encourage them to prescribe its drugs.

Sherman, 73, and his three sisters sold their family company for $5.3 billion in October. The Canadian media reported that the Sherman family agreed to pay $104 million to settle U.S. allegations that it paid kickbacks and bribes to doctors to push the firm’s drugs to U.S. consumers. Sherman’s company agreed to pay an additional $20 million to resolve a separate U.S. lawsuit alleging that it defrauded government health-care programs.

“It’s a great day for justice in the United States and a great day for independent health care in the United States,” Justice Department spokeswoman Lisa Monaco said.

Sherman’s company had been accused by the Justice Department of paying $7.3 million in bribes and kickbacks between 2003 and 2012, and manipulating prices for medications.

The settlement terms required Apotex to pay the money to a U.S. fund established for the case, but not directly to the Justice Department.

“[Sherman] has always acted in good faith, and at times acted alone, in the advancement of his business interests and in the benefit of his own well-being,” said Alan D. Brochstein, an attorney for one of Sherman’s three sisters, according to The Canadian Press.

Lawyers for other family members of Sherman are reportedly planning to challenge the settlement.

Leave a Comment