Jazz Pharmaceuticals announces civil settlement agreement with DOJ
Jazz Pharmaceuticals disclosed in a regulatory filing that the company and its subsidiaries Jazz Pharmaceuticals, Inc. and Jazz Pharmaceuticals Ireland Limited entered into a civil settlement agreement with the U.S. Department of Justice and the Office of Inspector General of the Department of Health and Human Services related to subpoenas that Jazz received from the DOJ in 2016 and 2017 requesting documents related to Jazz's support of charitable organizations that provide financial assistance to Medicare patients. Jazz previously announced an agreement in principle to resolve this matter. In accordance with the settlement agreement, the company will pay the U.S. Government the sum of $57M plus interest at a rate of 2.75% commencing from April 10, 2018 through the day before full payment is made, within ten business days. During 2018, the company recorded $58.2M related to this matter, including related interest, within accrued liabilities on its consolidated balance sheet with the related expense included in selling, general and administrative expenses on its consolidated statement of income. The U.S. Government will release the company from any civil or administrative monetary claim the U.S. Government has arising from allegations described in the settlement agreement relating to Jazz's conduct between 2011 and May 2014 in supporting a charitable foundation that provided financial assistance to Medicare patients. "The settlement agreement is not an admission of any wrongdoing or liability by Jazz but a settlement of the U.S. Government's claims," the company stated.