Breaking News
Investing Pro 0
Free Webinar - Crude Oil Trading 2023 | Thursday, February 9, 2023 | 01:00PM PST Enroll Now

Biogen finalizes $900 million drug kickback settlement, U.S. says

Stock Markets Sep 26, 2022 07:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A test tube is seen in front of displayed Biogen logo in this illustration taken, December 1, 2021. REUTERS/Dado Ruvic/Illustration
 
BIIB
-2.05%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Nate Raymond

BOSTON (Reuters) -Biogen Inc has finalized a $900 million settlement resolving a whistleblower lawsuit accusing the biotech company of paying doctors kickbacks to prescribe multiple sclerosis drugs, the U.S. Department of Justice said on Monday.

The settlement resolves a long-running whistleblower lawsuit in Boston federal court that a former employee pursued on the government's behalf. Biogen (NASDAQ:BIIB) in July disclosed it reached a potential settlement, which was subject to government approval.

For pursuing the case, the former employee, Michael Bawduniak, will receive $266.4 million from the settlement, said his lawyer, Thomas Greene. That sum shatters previous records for U.S. whistleblower awards, Greene said.

Cambridge, Massachusetts-based Biogen did not admit wrongdoing as part of the accord. In a statement, Biogen said it "believes its intent and conduct was at all times lawful and appropriate."

The lawsuit accused Biogen of directing millions of dollars in kickbacks to doctors to prescribe its MS drugs Avonex, Tysabri and Tecfidera from 2009 to 2014. The kickbacks came in the form of "sham" consulting deals and speaker programs as well as lavish dinners and entertainment, the lawsuit said.

The scheme resulted in false claims for payment being submitted to the government healthcare programs Medicare and Medicaid, the lawsuit alleged.

The case was filed in 2012 by Bawduniak under the False Claims Act, which allows whistleblowers to sue companies on the government's behalf to recover taxpayer money spent on fraudulent claims.

The Justice Department may intervene in such cases and litigate them itself following an investigation, though in 2015 it opted against doing so in Bawduniak's case, leaving him to pursue the case himself.

Greene, his lawyer, has called the settlement the largest recovery in over 150 years of False Claims Act cases to be secured by a whistleblower without the intervention or participation of the government.

Biogen finalizes $900 million drug kickback settlement, U.S. says
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email