A class action suit has been filed against Serono SA, manufacturer of biotechnology products, on behalf of health insurer Government Employees Hospital Association, Inc. The lawsuit claims that Serostim, a human growth hormone given to AIDS patients to treat a condition involving involuntary weight loss, was prescribed unnecessarily. Plaintiffs allege the drug was prescribed without medical necessity.
Last year Serono was found guilty of conspiring with a medical device maker to use a diagnosis that was not approved by the U.S. Food and Drug Administration and agreed upon a payout of $704 million.