Bayer Corporation, Kickback and False Statements, Indiana 2023

Pharmaceutical giant Bayer Corporation has been hit with a $40 million settlement over allegations that it paid kickbacks to hospitals and physicians to promote the use of three of its drugs, Trasylol, Avelox, and Baycol.

The settlement, announced yesterday, stems from two whistleblower lawsuits filed by Laurie Simpson, a former Bayer employee who worked in its marketing department. Simpson alleged that Bayer engaged in a series of unlawful acts, including paying kickbacks, marketing the drugs for off-label uses, and downplaying their safety risks.

The lawsuits, filed in the District of New Jersey and the District of Minnesota, alleged that Bayer’s actions resulted in the submission of false claims to the Medicare and Medicaid programs and violations of the laws of 20 states and the District of Columbia.

The settlement requires Bayer to pay $38,860,555 to the United States and $1,139,445 to the 20 states and the District of Columbia, bringing the total to $40 million.

Bayer is a global pharmaceutical company with a presence in Indiana.

The settlement is a significant blow to Bayer, which has faced numerous lawsuits and regulatory actions in recent years. The company has agreed to pay $40 million to resolve the allegations, with former employee Laurie Simpson set to receive approximately $11 million from the proceeds of the settlement.

The case highlights the continued efforts of whistleblowers to bring to light corporate wrongdoing and hold companies accountable for their actions.

Bayer Corporation, an Indiana corporation and manufacturer of pharmaceutical products, and its related entities, Bayer HealthCare Pharmaceuticals Inc., Bayer HealthCare LLC and Bayer AG, have agreed to pay $40 million to resolve alleged violations of the False Claims Act in connection with the drugs Trasylol, Avelox, and Baycol.

The settlement was announced today and arose from two whistleblower lawsuits filed and pursued by Laurie Simpson, a former employee of Bayer who worked in its marketing department.

Under the terms of the settlement, Bayer will pay $38,860,555 to the United States and $1,139,445 to the 20 states and the District of Columbia. Simpson will receive approximately $11 million from the proceeds of the settlement.

The two actions resolved by the settlement were brought under the False Claims Act’s qui tam provision, which permits private citizens to bring suit on behalf of the government for false claims and share in any recovery.

The cases are captioned United States ex rel. Simpson v. Bayer Corp., Civ. No. 05-cv-3895 (D.N.J.), and United States ex rel. Simpson v. Bayer Corp., Civ. No. 08-5758 (D.Minn), and were monitored by the Civil Division’s Commercial Litigation Branch and the U.S. Attorneys’ Offices for the District of New Jersey and the District of Minnesota.

Bayer Corporation, Kickback and False Statements, Indiana 2023 – Bayer to pay $40 million to resolve allegations of kickback and false statements.

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