Biogen pays $900 million to settle drug bribery allegations

The Justice Division introduced Monday that Biogen pays $900 million to settle a lawsuit alleging that the corporate bribed medical doctors to encourage medical doctors to prescribe their medicine.

A former Biogen worker turned whistleblower, Michael Bouduniak, sued the drug firm on behalf of the federal authorities in 2012 below the False Claims Act.

Bavdunik alleged that Biogen paid medical doctors bribes within the type of talking charges, session charges and meals from 2009 to 2014 to encourage them to prescribe their a number of sclerosis medicine.

In line with the Justice Division, the alleged bribes resulted in false claims on Medicare and Medicaid for prescriptions of Avonex, Tysabri and Tecfidera.

Biogen pays greater than $843 million to the federal authorities and greater than $56 million to fifteen states to settle the case. In line with the Justice Division, Bavdunik will obtain about $250 million in federal proceeds.

Brian Boynton, chief of the Justice Division’s Civil Division, mentioned: “The settlement introduced in the present day underscores the necessary function whistleblowers play in the usage of america False Claims Act to fight fraud affecting federal well being care packages. Play in complement.”

In an announcement Monday, Biogen denied any wrongdoing within the case. The corporate mentioned it desires to settle the lawsuit to deal with different priorities.

“Biogen believes that its intention and conduct have been lawful and applicable always and Biogen denies all allegations made on this case,” the corporate mentioned. “The US and the states didn’t intervene within the matter and the settlement doesn’t embody an acknowledgment of legal responsibility by Biogen.”

Biogen disclosed in its second-quarter report that it had reached an in-principle settlement to pay $900 million to settle the lawsuit.