Bayer to pay $40M to settle long-running false claims suits
Bayer agreed to pay $40 million to settle allegations its sales team paid kickbacks to hospitals and doctors for prescribing its drugs and that the pharmaceuticals company downplayed risks regarding certain of its offerings.
Bayer’s alleged misconduct concerning the drugs Trasylol, Avelox, and Baycol resulted in hospitals and doctors filing false claims to Medicaid and Medicare and violating the laws of 20 states and the District of Columbia, the Department of Justice said in a press release Friday.
The allegations came to light after former marketing employee Laurie Simpson filed a lawsuit in U.S. District Court for the District of New Jersey in 2005 claiming the sales team paid kickbacks to providers for prescribing Trasylol and Avelox. Bayer’s sales employees also paid kickbacks to hospitals and doctors for them to prescribe the drugs for off-label uses that were not reasonable or necessary, according to the settlement.