- Biogen Inc BIB has reached 900 million dollars settlement with a whistleblower who accused the company of paying bribes to doctors to encourage them to prescribe their multiple sclerosis drugs.
- The whistleblower behind the report, Michael Bawduniak, will be paid around $250 million directaccording to a statement released by the US Department of Justice on Monday.
- About $843 million will essentially go to the federal government, and a smaller portion — $56 million — to 15 states that have joined the lawsuit.
- Related: Biogen announces $900 million settlement in MS drug reimbursement whistleblower lawsuit days ahead of trial.
- Bawduniak, a former Biogen marketing director, took legal action under the False Claims Act, which authorizes a private citizen to sue in civil proceedings on behalf of the U.S. government when it appears that an individual or entity is threatening the state financially has cheated.
- In his lawsuit, filed in the District of Massachusetts, Bawduniak alleged that Biogen paid kickbacks to doctors in order to induce them to prescribe the company’s multiple sclerosis drugs.
- The case covers a period from 2009 to 2014.
- Assistant Assistant Attorney General Brian M. Boynton, chief of the Justice Department’s civil division, said: “The settlement announced today underscores the critical role whistleblowers and their attorneys play in applying the False Claims Act to combat fraud, the federal health care programs regards. “
- Price promotion: BIIB shares closed 1.03% lower at $195.75 on Monday.
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