Ty E. Howard, a partner in the White Collar practice group, was quoted in Law360 regarding Genzyme Corp.’s recent deferred prosecution agreement (DPA) with the U.S. Department of Justice. As part of the DPA, Genzyme admitted that its sales representatives promoted off-label uses of its Seprafilm product, a device used to prevent organs from adhering after certain surgical procedures. Genzyme admitted that its representatives helped surgeons convert the Seprafilm into a slurry that could be injected and used in increasingly common laproscopic procedures. As part of the DPA, Genzyme agreed to pay $32.5 million. The DPA follows Genzyme’s agreement to pay $22 million in 2013 to settle related False Claims Act allegations.
In commenting on the DPA, Howard noted that resolving the related criminal and civil allegations separately was less common than negotiating a single global settlement that resolves such claims at the same time: “Oftentimes these cases are going to be negotiated and resolved at one time, because companies want certainty,” he said.
Read the complete article, “Genzyme Seprafilm Admissions Muted in New DOJ Settlement,” that first appeared in Law360 on September 4, 2015. (login required)