MASSACHUSETTS
Officials stated that pharmaceutical company Biogen Inc. (Biogen), based in Cambridge, Massachusetts, has agreed to pay $900 million to resolve allegations of false claims to Medicare and Medicaid.
This resulted in paying kickbacks to physicians to induce them to prescribe Biogen drugs, federal officials stated.
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 federal False Claims Act.
The act permits a private party (known as a relator) to file a lawsuit on behalf of the United States and receive a portion of any recovery.
The United States may intervene in the action or, as in this case, the relator may proceed with the lawsuit.
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 offered and paid remuneration, including in the form of 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 U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “This matter is an important example of the vital role that whistleblowers and their attorneys can play in protecting our nation’s public health care programs.”
Under the settlement terms, Biogen will pay $843.8 million to the U.S. and $56.1 million to states.
Bawduniak will receive approximately 29.6% of the federal proceeds from the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.