Bayer AG agreed to pay $40 million to resolve US lawsuits linked to allegations that company officials bribed hospitals and physicians to use its drugs, the Justice Department said.
(Bloomberg) — Bayer AG agreed to pay $40 million to resolve US lawsuits linked to allegations that company officials bribed hospitals and physicians to use its drugs, the Justice Department said.
The settlement stems from two “whistle-blower” suits filed by former Bayer marketing employee Laurie Simpson almost two decades ago and subsequent litigation by the US government, the DOJ said Friday in a statement. Simpson will receive about $11 million from the settlement, the department said.
Bayer, one of the world’s largest pharmaceutical companies, didn’t immediately respond to a request for comment. Under the settlement, Bayer didn’t admit liability, DOJ said.
The company was accused of violating the US False Claims Act in connection with the drugs Trasylol, Avelox and Baycol, the department said. The lawsuits alleged unlawful actions, including paying kickbacks, marketing drugs off-label and downplaying their safety risks.
Simpson alleged Germany-based Bayer and some US units caused the submission of false claims to Medicare and Medicaid programs and violated the laws of 20 states and Washington, D.C.
The case is Simpson v. Bayer, 05-cv-3895, US District Court, District of New Jersey (Newark).
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