NEWARK, N.J. (1010 WINS) — Bayer Corp., one of the largest pharmaceutical companies in the world, settled two lawsuits in a New Jersey federal court that alleged kickbacks to doctors and covering up the safety risks of drugs for over $40 million, the Department of Justice announced on Friday.
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Laurie Simpson, a whistleblower who worked for Bayer’s marketing department, accused the pharma giant of paying kickbacks to doctors to convince them to prescribe Trsylol and Avelox, sometimes even for off-label uses the drugs are not intended for.
Trasylol is used to prevent blood loss during heart surgery and Avelox is an antibiotic used to treat bacterial infections.
Simpson also accused Bayer of downplaying the safety risks of Trasylol, which has since been taken off the market.
The lawsuit argued Bayer caused the submission of false claims to Medicare and Medicaid through its fraudulent promotion of the drugs.
Simpson also filed a second lawsuit that accused Bayer of downplaying the risks of Baycol and lying about how effective the drug is compared to similar options.
Baycol, which was used to lower cholesterol, has also been pulled from shelves due to health risks.
“Bayer — one of the largest pharmaceutical companies in the world — engaged in a series of unlawful acts, including paying kickbacks to doctors and hospitals, marketing them off-label, and downplaying their safety risks,” U.S. Attorney Philip R. Sellinger said. “This resolution should send a message to the pharmaceutical industry that such conduct undermines the integrity of federal health care programs and jeopardizes patient safety.”
Bayer will pay $38.9 million to the U.S. and $1.14 million to 20 states that were impacted as well as the District of Columbia. Despite the payout, Bayer did not admit to wrongdoing in the settlement.
Simpson, who pursued the case for almost two decades, will receive $11 million from the proceeds of the settlement.
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