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Sept 2 (Reuters) – Bayer AG (BAYGn.DE) agreed to shell out $40 million to settle statements about its alleged use of kickbacks and false statements similar to three prescription medicine, the U.S. Section of Justice reported on Friday.
The settlement arose from whistleblower lawsuits submitted in 2005 and 2006 in New Jersey by Laurie Simpson, a previous Bayer employee who worked in its marketing department and accused the German organization of violating the federal Untrue Statements Act.
Bayer did not acknowledge wrongdoing in agreeing to settle.
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In a statement, it said the accord “displays a business decision by the corporation that resolution was preferable to continuing previously protracted litigation.”
Bayer was accused of paying out kickbacks to physicians and hospitals to induce them to use Avelox, which treats bacteria strains, and Trasylol, which controls bleeding in coronary heart surgical procedures, and promoted the medicine for off-label makes use of that were being not sensible or vital.
It was also accused of downplaying the risks of Trasylol and the statin drug Baycol, both of those of which ended up withdrawn from the industry for basic safety factors, and overstating Baycol’s efficiency.
Bayer’s carry out allegedly resulted in submissions of false Medicare and Medicaid statements for Avelox and Trasylol, and fraudulently triggered the Division of Defense’s combat logistics aid company to renew some contracts linked to Baycol.
“This kind of carry out undermines the integrity of federal health and fitness care packages and jeopardizes patient security,” U.S. Attorney Philip Sellinger in New Jersey mentioned in a assertion.
The Justice Office claimed Bayer will pay back $38.9 million to the United States, and $1.1 million to 20 U.S. states and Washington, D.C., whose regulations were allegedly violated.
Simpson will obtain $11.1 million from settlement proceeds. The Baycol lawsuit was moved in 2008 to Minnesota.
The Fake Claims Act lets whistleblowers sue on behalf of the U.S. govt and share in recoveries.
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Reporting by Jonathan Stempel in New York Enhancing by Mark Porter
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