Daily Management Review

Bayer to pay $40 million to settle drug claims


A former employee of Bayer, Laurie Simpson, sued the manufacturer in 2005 and 2006 for Bayer's deceptive advertising and medication sales practices. To resolve the claims, the medication manufacturer has agreed to pay $40 million to American authorities; Ms. Simpson will receive $11.1 of that amount.

Sebastian Rittau
Sebastian Rittau
According to Reuters, Laurie Simpson charged Bayer with breaking the federal False Claims Act of the United States. The "Lincoln Act" permits people to sue businesses on behalf of the government.

Ms. Simpson claims that Bayer paid medical professionals in order to promote the medications Avelox and Trasylol in the US. She also accused the corporation of peddling medications that may be misused. The prosecution claimed that Bayer's actions led to fraud in the government's Medicare and Medicaid programs.

Despite the fact that Bayer representatives have denied their organization's involvement in the scam, the maker has agreed to pay $40 million to put an end to the "already long case."

source: reuters.com