The Department of Justice said on Thursday that global pharmaceutical company Pfizer, Inc. settled allegations that it used a foundation as a conduit to pay the copays of Medicare patients taking three Pfizer drugs, in violation of the False Claims Act, and will pay $23.85 million to resolve the claims. Under the Anti-Kickback Statute, pharmaceutical companies are prohibited from offering, directly or indirectly, any payment-which includes paying patients' copay obligations-to induce Medicare patients to purchase the company's drugs. "According to the allegations in today's settlement agreement," said United States Attorney Andrew E. Lelling, "Pfizer knew that the third-party foundation was using Pfizer's money to cover the co-pays of patients taking Pfizer drugs, thus generating more revenue for Pfizer and masking the effect of Pfizer's price increases." Pfizer settled allegations only; there was no determination of liability.