The German multinational pharmaceutical company is to pay a whopping $40 Million in settlements to resolve an issue that was brought to light by whistle-blowing.
These claims have been made in relation to the false statements made about three of the prescription drugs manufactured by the company.
The settlement came as a result of the lawsuits filed by a former employee of the Leverkusen-based Bayer AG filed in the years 2005 and 2006 in New Jersey.
Allegations were made that the actions of the company went against the stipulated clauses of the False Claims Act.
Although the pharmaceutical giant has agreed to a settlement of $40 Million, they have not taken any responsibility for the violations they have been accused of.
Bayer AG has been accused of bribing doctors to prescribe the medication Trasylol and Avelox. The first one is used to treat certain strains of bacteria while the latter one treats bleeding during surgeries on the heart.
The company has been accused of pushing for the use of these drugs while off-label. Such action has been considered dangerous and unnecessary.
Bayer AG has also allegedly tried to downplay the risks involved in the use of Trasylol and Baycol. Both of the aforementioned drugs were removed from market supply due to concerns over safety.
The company allegedly wanted to benefit from the drugs’ supply and thus overstated the effectiveness of the drug.
The DOJ has stated that the pharmaceutical giant will be paying $38.9 to the United States as a whole. The rest is scheduled to be paid to the 20 states along with the capital, Washington DC to pay for the violations of their laws caused by the company.