What was Biogen's $900 million settlement about?
A whistleblower alleged Biogen paid speaker fees and consulting payments from 2009 to 2014 to induce prescriptions of Avonex, Tysabri and Tecfidera — then litigated the case alone for years after the government declined to intervene.
In September 2022 Biogen agreed to pay $900 million to resolve allegations that it caused false claims to Medicare and Medicaid by paying kickbacks to physicians. The case was brought by former employee Michael Bawduniak, who alleged that from January 2009 to March 2014 Biogen paid speaker honoraria, speaker training fees, consulting fees and meals to induce doctors to prescribe its multiple sclerosis drugs Avonex, Tysabri and Tecfidera.
According to CNBC, more than $843 million went to the federal government and $56 million to 15 states, and the whistleblower received about $250 million. Unusually, the government declined to intervene; the whistleblower litigated the case himself for years. Biogen denied all allegations, said its conduct was lawful, and the settlement included no admission of liability.