Business & Tech

Shire will pay $350 million to settle kickback charges

A sign sits in front of Shire's manufacturing facility in Lexington, Massachusetts in this file photo from July 18, 2014. U.S. pharmaceutical company AbbVie said October 14, 2014 it was reconsidering its $55 billion takeover of Shire in the wake of U.S. government moves to curb deals designed to cut tax, wiping $13 billion off the London-listed firm's stock price. REUTERS/Brian Snyder/Files (UNITED STATES - Tags: BUSINESS)

Shire PLC is based in Ireland, but the drug maker’s headquarters is in Lexington.

Drug maker Shire PLC has settled a case involving kickback allegations by the US Department of Justice and 37 states, according to New York attorney general Eric Schneiderman.

Under the settlement deal, Shire, which is based in Ireland but has its US headquarters in Lexington, agreed to pay the federal government $350 million, including $14.5 million that will go to state Medicaid programs. Wednesday’s deal finalizes an August settlement agreed to by the parties involved.


The agreement settles allegations that Shire and Advanced BioHealing Inc., a company it bought in 2011, employed kickbacks and other unlawful methods to improperly promote a bioengineered human skin substitute called Dermagraft.

In an e-mailed statement, Shire said it didn’t admit any wrongoing by agreeing to the payment.

“We are pleased to have reached a resolution on this matter and believe that the terms of the resolution reflect Shire’s extraordinary cooperation with the Department of Justice throughout its lengthy investigation,” a spokeswoman said.

Robert Weisman can be reached at Follow him on Twitter @GlobeRobW.
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