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Drugmaker settles lawsuit

Thursday, May 13, 2004 | 9:12 a.m.

Pfizer Inc., the world's largest drugmaker, said today it settled charges its Parke-Davis unit paid kickbacks to encourage doctors to prescribe the epilepsy drug Neurontin for other ailments..

The settlement stems from a U.S. investigation of collusion among drug companies and doctors to bill government health programs for free samples given as promotions. AstraZeneca Plc and Tap Pharmaceuticals Inc. pleaded guilty to criminal charges and agreed to settlements totaling more than $1.2 billion.

People familiar with the case said the drugmaker would pay at least $400 million to settle the charges.

The settlement resolves all U.S. and state investigations related to the promotion and marketing of Neurontin, New York- based Pfizer said in a statement.

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