WASHINGTON--(BUSINESS WIRE)--Today, the nationally recognized attorneys from Baron & Budd obtained an $11,850,000 settlement in a case against pharmaceutical marketing company, Sanofi-Aventis U.S., LLC. The company markets drugs, including Lemtrada, a treatment for patients with multiple sclerosis (MS).
In this case, a whistleblower came forward with information alleging that Sanofi was paying kickbacks to physicians and patients. The scheme was allegedly perpetrated by making the cost of Lemtrada extremely high. One course of treatment costs about $100,000 making the Medicare Part B co-pay about $20,000.
According to the suit, Sanofi used a third-party group to identify Medicare patients who were prescribed Lemtrada and refer them to apply for patience assistance through The Assistance Fund, an entity claiming 501(c)(3) status for operating a fund for MS patients.
Sanofi allegedly made payments to The Assistance Fund, not with a charitable purpose, but to use the fund as a way to encourage Medicare patients to purchase Lemtrada. The fund would cover the patient’s Medicare co-pay in violation of the Anti-Kickback Statute, and then Sanofi would bill Medicare for the rest of the unnecessarily costly treatment.
“This case and settlement are proof that whistleblowers are essential in fighting fraud against the government and taxpayers,” said Baron & Budd Shareholder, Scott Simmer. “These drug companies need to be held accountable for wasting taxpayer dollars and defrauding government programs under the guise of a charitable organization.”
The federal government operates using taxpayer dollars. Unfortunately, criminals and fraudsters see the massive government budget as a means to line their own pockets. Drug companies create Patient Assistance Programs or Co-Pay Charities to entice patients to use expensive, name brand drugs by covering co-pay costs. The federal Anti-Kickback Statute makes it illegal for these groups to pay the co-pays of Medicare and Medicaid patients, but many drug makers use them to maximize their profits by scamming money from the government.
Whistleblowers are crucial in identifying these fraudulent charities and stopping these schemes against the government. When whistleblowers come forward with evidence of this fraud, they can receive a portion of the recovery.
For more information about Patient Assistance Program fraud and becoming a whistleblower, please visit www.becomeawhistleblower.com.
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Baron & Budd, P.C. is among the largest and most accomplished plaintiffs’ law firms in the country. With more than 40 years of experience, Baron & Budd has the expertise and resources to handle complex litigation throughout the United States. As a law firm that takes pride in remaining at the forefront of litigation, Baron & Budd has spearheaded many significant cases for hundreds of entities and thousands of individuals. Since the firm was founded in 1977, Baron & Budd has achieved substantial national acclaim for its work on cutting-edge litigation, trying hundreds of cases to verdict and settling tens of thousands of cases in areas of litigation as diverse and significant as dangerous and highly addictive pharmaceuticals, defective medical devices, asbestos and mesothelioma, California wildfires and environmental contamination, fraudulent banking practices, e-cigarettes, motor vehicles, federal whistleblower cases, and other consumer fraud issues.
