Pharmaceutical Company Celgene Settles Suit For $280 Million


Published July 26th, 2017

Pharmaceutical Company Celgene Settles Suit For $280 Million

LOS ANGELES (AP) — A pharmaceutical company has agreed to cough up 0 million to settle a lawsuit in federal court in Los Angeles alleging it committed fraud promoting two cancer drugs for unapproved purposes.

New Jersey-based Celgene (SELL'-jeen) said in a statement Tuesday that it denied any wrongdoing and settled the lawsuit to avoid uncertainty, distraction and expensive litigation.

The lawsuit filed in federal court by a former sales manager alleged the company submitted false claims to Medicare and health care programs in 28 U.S. states and Washington, D.C.

The lawsuit claimed Celgene used false and misleading statements and promoted Thalomid and Revlimid for uses not approved by the U.S. Food and Drug Administration or covered by public health care programs.

It also said the company paid kickbacks to doctors to prescribe the drugs.