Seroquel Illegal Marketing Case Settled for $520 Million

Washington, DC: A $520 million settlement has been reached with AstraZeneca and the US Justice Department, which will bring to an end federal investigations into the marketing practices for the company's blockbuster antipsychotic drug Seroquel.

The UK-based pharmaceutical company will also sign a corporate integrity agreement with the US federal government that relates to the marketing of Seroquel for off-label or unapproved indications, the New York Times reports.

AZ faced accusations of misleading patients and doctors about the effectiveness of the schizophrenia medication, and the associated risk for diabetes in particular. The aggressive marketing practices resulted in the drug being prescribed to treat children and elderly people for unapproved indications. Side effects including death and rapid weight gain in children prompted warnings about using the drug to treat elderly patients with dementia.

The settlement makes AZ the fourth pharmaceutical company in three years to admit to federal charges of illegal marketing of antipsychotic medications. However, the company still faces a reported 25,000 civil suits brought by patients who allege the company did not adequately disclose the health risks associated with the drug.