Biogen agrees $900 million whistleblower settlement

In what is the biggest ‘whistleblower’ settlement, US major Biogen (Nasdaq: BIIB) has agreed to pay $900 million to resolve allegations that it caused the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce them to prescribe its multiple sclerosis drugs for their patients.

In a company statement, Biogen said that it denied all accusations in the case and that it settled so it could “remain focused on our patients and strategic priorities.”

According to the US Department of Justice, the settlement announced yesterday 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, 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. The United States may intervene in the action or, as in this case, the relator may proceed with the lawsuit.