U.S. drugmaker Biogen will pay $900 million to settle a federal whistleblower lawsuit that alleged the company overcharged the country’s health insurance programs and paid doctors under the table to prescribe its drugs. Photo by CJ Gunther/EPA-EFE
September 27 (UPI) — U.S. drugmaker Biogen will pay $900 million to settle a federal whistleblower lawsuit that alleged the company overcharged the country’s health insurance programs and paid doctors under the table to prescribe its drugs. The case first emerged in 2012 when former Biogen employee Michael Bawduniak sued the pharmaceutical giant under the False Claims Act, alleging the company coaxed favors from doctors by paying them lavishly for speaking engagements and consultations, then sweetened the pot with free meals.
The alleged kickback scheme, which involved drugs to treat multiple sclerosis, took place between January 2009 and March 2014 and led to an increase in misreporting to Medicaid and Medicare for prescriptions from Avonex, Tysabri and Tecfidera, the The Department of Justice said in a statement.
Under the terms of the settlement, Biogen agreed to pay the government $843 million, while 15 states will receive an additional $56 million in compensation from the company, which was not required to admit wrongdoing. .
Bawduniak, meanwhile, will receive $250 million from the government.
“The settlement announced today underscores the critical role whistleblowers play in complementing the United States’ use of the False Claims Act to combat fraud affecting federal health care programs,” said Brian Boynton. , head of the civil division of the Ministry of Justice.
Biogen also released a statement on Monday denying the charges.
“Biogen believes its intent and conduct were at all times legal and proper and Biogen denies all allegations raised in this matter,” the Massachusetts-based company said. according to CNBC. “The United States and the States did not intervene in the matter and the settlement does not include any admission of liability by Biogen.”
Earlier this month, Bayer agreed to pay $40 million to settle alleged violations of the False Claims Act, a case that also stemmed from federal lawsuits filed by a former employee.
