Abbott Laboratories $1.5 Billion Settlement (2012)

In 2012, Abbott Laboratories agreed to pay $1.5 billion to resolve criminal and civil allegations related to the unlawful promotion of its anti-seizure drug, Depakote. For Barrett Johnston, this case stands as a powerful example of how whistleblowers can hold even the largest pharmaceutical companies accountable for deceptive practices.

Abbott was accused of marketing Depakote for unapproved uses — including dementia and schizophrenia — despite lacking FDA approval for those indications. Such off-label promotion violated the Food, Drug, and Cosmetic Act and the False Claims Act, as it led to false reimbursement claims submitted to Medicare and Medicaid.

The settlement included $800 million in civil damages and $700 million in criminal penalties, with multiple whistleblowers sharing in a substantial award. Abbott also entered into a corporate integrity agreement with the government, requiring compliance reforms and independent monitoring.

The Depakote case reinforced a key truth: when whistleblowers expose fraudulent marketing, they protect patients and taxpayers alike — ensuring that medical decisions are guided by science, not sales tactics.