Humana calls Mallinckrodts Acthar a billion-dollar golden goose in 700M Dollars fraud lawsuit

Mallinckrodt is getting burned on all sides as federal prosecutors scope out the drugmakers controversial H.P. Acthar Gel marketing and price hikes. Now, one of the largest U.S. insurers is looking to pile on. Humana overpaid for Acthar by 700 million dollars because of Mallinckrodts widespread campaign to stifle competition and pay doctors and patients to choose the pricey med, the insurer said in a new federal lawsuit in California. Humana accused Mallinckrodt of a complex, multipart scheme involving monopoly, bribery, racketeering, fraud, and other deceptive and unfair practices to fuel the drugs skyrocketing price increases and induce physicians to boost prescriptions. Mallinckrodt acquired Acthar in 2014 as part of a $5.6 billion purchase of Questcor, which has landed the U.K. drugmaker in a raft of legal problems since its buyout. Humana did not provide a statement on the lawsuit, citing a "longstanding policy not to comment on pending litigation." A Mallinckrodt spokesman could not be reached for comment by press time.