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Attorney General Settles with Twenty-Five Manufacturers over Violations of Vermont’s Prescribed Product Gift Ban And Disclosure Law

CONTACT: Kate Whelley McCabe, Assistant Attorney General, (802) 828-5621

September 23, 2013

Last week, the Attorney General’s Office filed Assurances of Discontinuance executed by twenty-five manufacturers settling violations of Vermont’s Prescribed Product Gift Ban and Disclosure Law. Each manufacturer agreed to prospective compliance with the law, which bans most gifts to Vermont health care providers and requires manufacturers of prescribed products—including pharmaceuticals, biologics and medical devices—to disclose expenditures deemed appropriate by the legislature. All violations were self-reported. Twenty-four manufacturers, having failed to file disclosures entirely, paid a total of $25,250.00 to the State in fees. In addition, one manufacturer paid $36,000.00 in civil penalties to settle a total of six gift-ban violations; each violation consisted of providing a meal to a health care provider. “My Office appreciates that these companies were forthcoming about their activities and cooperative in resolving these violations,” said Attorney General Sorrell. “Similarly situated manufacturers that are less forthright and cooperative will not receive such favorable treatment.”

For a copy of the AODs, see the Attorney General’s website at: www.atg.state.vt.us under “Disclosures by Manufacturers of Prescribed Drugs, Biological Products and Medical Devices.”

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