ABBOTT paga...$1.6 billion

Abbott Laboratories said it will pay to settle federal and state claims resulting from an investigation into its neurologic medication Depakote.

The company will pay $800 million to resolve civil allegations split among federal and state governments, $700 million for a criminal penalty, the Justice Department said in a statement.

The settlement results from a four-year-old investigation into the company marketing the epilepsy medicine for unapproved uses, the Abbott Park, Illinois-based company said today in a statement. The company said it is also paying $100 million to the states to resolve consumer protection matters.

“Today’s settlement shows further evidence of our deep commitment to public health and our determination to hold accountable those who commit fraud,” James M. Cole, Deputy Attorney General, said in the Justice Department statement. “We are resolute in stopping this type of activity and today’s settlement sends a strong message to other companies.”

The settlement, the second-largest illegal pharmaceutical marketing accord in U.S. history, comes as Abbott officials are pushing ahead with plans to split the firm in two by the end of the year. One of the resulting companies will sell medical products and the other prescription medicines. Abbott’s first- quarter revenue climbed 4.6 percent to $9.46 billion, executives said last month.

The company previously announced it had set aside funds to pay settlement of about this size. (Ver)