Bayer to pay USD 40 million to resolve US whistleblower claims over three drugs
New Delhi: Bayer AG agreed to pay $40 million to settle claims over its alleged use of kickbacks and false statements related to three prescription drugs, the U.S. Department of Justice said on Friday.
The settlement arose from whistleblower lawsuits filed in 2005 and 2006 in New Jersey by Laurie Simpson, a former Bayer employee who worked in its marketing department and accused the German company of violating the federal False Claims Act.
Bayer did not admit wrongdoing in agreeing to settle.
In a statement, it said the accord "reflects a business decision by the company that resolution was preferable to continuing already protracted litigation."
Bayer was accused of paying kickbacks to doctors and hospitals to induce them to use Avelox, which treats bacteria strains, and Trasylol, which controls bleeding in heart surgeries, and marketed the drugs for off-label uses that were not reasonable or necessary.
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