Bayer to pay US$40m to end whistle-blower claims

BAYER agreed to pay US$40 million to resolve US lawsuits linked to allegations that company officials bribed hospitals and physicians to use its drugs, the Justice Department (DOJ) said.

The settlement stems from 2 “whistle-blower” suits filed by former Bayer marketing employee Laurie Simpson almost 2 decades ago and subsequent litigation by the US government, the DOJ said on Friday (Sep 2) in a statement. Simpson will receive about US$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 programmes and violated the laws of 20 states and Washington, DC. BLOOMBERG