Bayer Agrees to $40 Million DOJ Settlement Over Alleged Kickbacks, False Claims
By Kathryn Hardison
Bayer Corp. has agreed to pay $40 million to resolve alleged
violations under the False Claims Act related to three drugs, the
U.S. Justice Department said Friday.
It was alleged that the company used kickbacks and false
statements in connection with the drugs Trasylol, Avelox and
Baycol. The settlement follows two whistleblower lawsuits filed by
Laurie Simpson, a former employee of Bayer who worked in its
Under the terms of the settlement, Bayer and its related
entities--Bayer HealthCare Pharmaceuticals Inc., Bayer HealthCare
LLC and Bayer AG--will pay roughly $38.9 million to the U.S. and
more than $1.1 million to 20 states and the District of
A Bayer spokesman said that the allegations focus on conduct
that dates back more than 15 years.
"The settlement of these cases, which does not include any
admission of wrongdoing, reflects a business decision by the
company that resolution was preferable to continuing already
protracted litigation under a statute that is inefficient and in
need of reform," spokesman Christopher Loder said.
Mr. Loder also said that, as a result of the settlement, the two
cases made under the False Claims Act would be dismissed.
Under the first lawsuit, Ms. Simpson alleged that the company
paid kickbacks to hospitals and physicians to get them to use the
drugs Trasylol and Avelox. She also alleged that the drugs were
marketed for off-label uses that were not reasonable or necessary,
and that Bayer downplayed the safety risks of Trasylol, which is a
drug used to control bleeding in certain heart surgeries.
In the lawsuit, filed in New Jersey, Ms. Simpson also alleged
that as a result of this conduct, Bayer caused the submission of
false claims to the Medicare and Medicaid Programs and violated the
laws of 20 states and the District of Columbia.
Under a second lawsuit, which was transferred to the District of
Minnesota, Ms. Simpson alleged that Bayer knew about and downplayed
Baycol's risks of causing rhabdomyolysis. The lawsuit further
alleged that Bayer misrepresented the efficacy of the drug Baycol
when compared to other statins, and that Bayer induced the Defense
Logistics Agency to renew certain contracts relating to Baycol.
"Today's recovery highlights the critical role that
whistleblowers play in the effective use of the False Claims Act to
combat fraud in federal healthcare programs," said Brian Boynton,
principal deputy assistant attorney general and head of the Justice
Department's Civil Division.
Write to Kathryn Hardison at email@example.com
(END) Dow Jones Newswires
September 02, 2022 13:43 ET (17:43 GMT)
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