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Biogen Inc., Pharmaceutical Giant, Fined $900 Million for Kickbacks to Physicians
Biogen Inc., a pharmaceutical company based in Cambridge, Massachusetts, has agreed to pay a staggering $900 million to resolve allegations that it violated the False Claims Act by causing the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce them to prescribe Biogen drugs.
The settlement announced today resolves a lawsuit filed and litigated by former Biogen employee Michael Bawduniak against Biogen under the qui tam or whistleblower provisions of the False Claims Act, which permit a private party (known as a relator) to file a lawsuit on behalf of the United States and receive a portion of any recovery.
In his lawsuit filed in the District of Massachusetts, Bawduniak alleged that Biogen paid kickbacks to physicians to induce them to prescribe the company’s multiple sclerosis drugs. According to the relator’s complaint, from Jan. 1, 2009, through March 18, 2014, Biogen held programs through which it offered and paid remuneration, including speaker honoraria, speaker training fees, consulting fees and meals, to health care professionals who spoke at or attended Biogen’s speaker programs, speaker training meetings or consultant programs to induce them to prescribe the drugs Avonex, Tysabri and Tecfidera in violation of the Anti-Kickback Statute.
“We thank Mr. Bawduniak for uncovering this behavior and bringing it to light,” said United States Attorney Rachael S. Rollins. “This matter is an important example of the vital role that whistleblowers and their attorneys can play in protecting our nation’s public healthcare programs.”
Under the terms of the settlement, Biogen will pay $843,805,187 to the United States and $56,194,813 to 15 states. The United States will pay Bawduniak a share of the federal recovery.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Biogen Inc.
Defendant: Biogen Inc.
Criminal Charges: Violating the False Claims Act by causing the submission of false claims to Medicare and Medicaid through kickbacks to physicians.
City and State: Cambridge, Massachusetts
Exact Date: January 2009 – March 2014
Sentence or Outcome: Biogen Inc. agreed to pay $900 million in settlement.
Dollar Amounts: $843,805,187 to the United States, $56,194,813 to 15 states, and an unknown amount to Bawduniak.
Key Facts
- State: Massachusetts
- Category: White Collar Crime|Fraud
- Source: DOJ Press Release â†â€â€
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