A deferred prosecution agreement (DPA) is an agreement between a prosecutor and a defendant in a criminal case. It allows the defendant to avoid a trial and potentially reduce the severity of the charges, as long as they agree to comply with certain conditions set forth in the agreement.
Recently, pharmaceutical company Avanir Pharmaceuticals entered into a DPA with the Department of Justice (DOJ) over allegations of improper promotion of its drug Nuedexta. The drug is approved for the treatment of pseudobulbar affect (PBA), a neurological condition that causes uncontrollable crying or laughing.
The DOJ alleged that Avanir marketed Nuedexta for off-label uses, including in elderly patients with dementia who did not have PBA. The company also allegedly paid kickbacks to doctors and healthcare providers in an effort to boost sales of the drug.
Under the terms of the DPA, Avanir agreed to pay a $95 million settlement and to implement various compliance measures to prevent future misconduct. The company also admitted to certain facts related to the allegations.
For companies like Avanir, DPAs can be a way to avoid the potential damage of a criminal trial while still acknowledging wrongdoing and taking steps to improve compliance. However, critics argue that DPAs can be too lenient and allow companies to avoid true accountability for their actions.
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