Search Site
Menu
Whistleblower Lawsuit Related to Cancer Drug Marketing Leads to Celgene Paying $280 Million

Celgene Corporation, a biotech company based in New Jersey, will pay out $280 million to settle claims that it cited uses not approved by the U.S. Food and Drug Administration (FDA) in promotion of its cancer treatment drugs Thalomid and Fevlimid.

According to Judge George H. King, the plaintiff “provided sufficient evidence” that the corporation was promoting the drug for uses the FDA had not approved. As a result, the government had to pay hundreds of thousands of dollars for “off label” prescriptions.

Both the drugs are approved for use in treating myeloma, but Celgene also pitched drugs to physicians making claims about off-label uses. The company also allegedly paid kickbacks to doctors and hospitals to ensure the drugs would be widely prescribed to patients.

Because of this off-label marketing, Celgene allegedly submitted false Medicare claims in 28 states and the District of Columbia. Federal programs only cover prescriptions for DFA-approved uses, which meant Medicare billings for these non-approved uses are technically fraudulent. By accepting the settlement, however, Celgene does not admit any guilt. It will instead pay $259.3 million to the federal government, $4.7 million to California and a total of $16 million spread throughout the rest of the states affected by its alleged wrongdoing.

Whistleblowers crucial in false claims cases

In many cases, the federal government would never become aware of false claims and other similar types of fraud if not for the reports of whistleblowers who became aware of the wrongdoing in their company or agency. This is one of the reasons why whistleblower actions are subject to such strong protections from the federal government: because their actions are crucial to eliminating waste and fraud.

If you would like to explore your options for filing a complaint regarding false claims or fraud, contact a knowledgeable Dallas attorney at Whistleblower Law for Managers.

Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    #600
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
Testimonials
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

FOLLOW US
Facebook Twitter Linkedin RSS Feed JD Supra