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Drug Company Reaches Agreement After Fake Drug Indictment

Added May 5th, 2006

A drug company that was indicted in relation to a scam involving the sales of fake Lipitor medication has agreed to forfeit over $2 million after charges against the company were dismissed. HD Smith Wholesale Co. of Springfield, IL is the fourth largest drug wholesaler in the country. It was charged along with 13 other defendants in Kansas last year.

The indictment accused the defendants of planning to sell over $40 million worth of Lipitor that was fake, illegally imported, or stolen. Other prescription drugs were also named as part of the scam. The drug wholesaler has not admitted that the $2.2 million it is forfeiting was from sales of these drugs, nor has it denied the allegations.

U.S. Attorney Bradley J. Schlozman stated: “This case shines a light on a little-known aspect of marketing prescription drugs, a secondary market that needs to be reformed to protect the American public against unscrupulous wholesalers who introduce counterfeit, stolen and illegally diverted drugs into the national distribution system.”

The charges against HD Smith were dropped after an order was issued today, stating that although it was not any one particular employee that was responsible for the alleged actions “the company’s management did not pervasively engage in misconduct.”

Drug Company Reaches... | Printable Version (Opens In New Window)


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