Pharmaceutical manufacturer Bayer Corporation and its related entities are to pay $40 million to resolve two whistleblower lawsuits filed by a former employee.
The lawsuits were filed by Laurie Simpson who used to work in Bayer’s marketing department. They are related to false claims made by the company about three of its drugs: Trasylol, Avelox, and Baycol.
According to the terms of settlement, Bayer will pay $38,860,555 to the United States and $1,139,445 to 20 states as well as the District of Columbia.
Simpson will receive roughly $11 million from the proceeds of the settlement, according to a Sept. 2 press release from the Department of Justice.
In one lawsuit, the company is alleged to have paid kickbacks to physicians and hospitals to entice them to use the company’s drugs Avelox and Trasylol. These drugs were also marketed for off-label uses that were “not reasonable or necessary,” the release said.
Bayer ended up submitting false claims to Medicaid and Medicare programs, violating the laws of 20 states as well as the District of Columbia.
Trasylol is a drug used to control bleeding during heart surgeries. It was removed from the U.S. market after a study showed the drug increased the risk of death compared to alternatives. Avelox is an antibiotic used to treat certain bacterial strains.
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