Bayer Paying $40 Million to Settle 2 Whistleblower Suits
The Department of Justice (DoJ) says Bayer has agreed to pay $40 million to resolve two whistleblower suits alleging violations of the False Claims Act in connection with the drugs Trasylol, Avelox, and Baycol. The whistleblower suits were filed and pursued for almost two decades by former Bayer marketing employee Laurie Simpson. She will receive about $11 million from the settlement, the department says.
The DoJ says Simpson first filed a suit alleging that the company paid kickbacks to hospitals and doctors to induce them to use Trasylol and Avelox and also marketed the drugs for off-label uses that were not reasonable and necessary. She also said Bayer downplayed Trasylol’s safety risks.
Simpson’s second suit said Bayer knew about, but downplayed, Baycol’s risks of causing rhabdomyolysis and that the company misrepresented the drug’s efficacy when compared to other statins.
Trasylol and Baycol have been removed from the market for safety reasons, the DoJ says.
Bayer will pay $38,860,555 to the federal government and $1,139,445 to 20 states and the District of Columbia.