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Bayer Settles Diabetes Marketing Kickback Case for $97.5 Million

This is a settlement for the Drugs/Medical Devices lawsuit.

Bayer HealthCare has reached an agreement with the US Department of Justice related to an investigation into the Diabetes Care division's historical marketing programs with certain mail order customers that took place during the period between 1998 and 2003.

Under the terms of the agreement, Bayer will pay $97.5 million to the government, and will enter into a Corporate Integrity Agreement with the Office of Inspector General for the Department of Health and Human Services.

The case alleges that Liberty Medical Supply, a major medical supplier in the US, received nearly $2.5 million from Bayer to persuade patients to switch their diabetic supplies to those made by Bayer. Another 10 suppliers are alleged to have received roughly $375,000 for similar reasons. This resulted in the suppliers submitting false claims to Medicare, and Bayer hiding the 'cash for patients' payments as advertising expenditures.

In its press release, Bayer states it has reached the settlement in order to "avoid the time, uncertainty and expense of litigation."

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Published on Dec-1-08


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