Bristol-Myers Squibb settle $30 million California kickback lawsuit

pharmafile | July 20, 2016 | News story | Research and Development, Sales and Marketing BMS, Bristol-Myers Squibb, california, lawsuit 

Bristol-Myers Squibb (BMS) has agreed to pay $30 million to the California Department of Insurance to settle an almost decade long litigation related to kickbacks paid by BMS to doctors in return for prescribing its medicines.

Three former employees filed a lawsuit in 2007 alleging that, between 1997 and 2003, the company used a variety of methods to induce physicians to prescribe their medicines. This included free meals, tickets to sporting events and tickets to the theatre. The state entered the lawsuit in 2011.

By providing these lavish gifts to doctors, BMS were said to be in violation of the California Insurance Frauds Prevention Act. As well as the $30 million payment, BMS are required to affirm its commitment to abiding by state laws and avoiding similar actions in future.

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California Insurance Commissioner Dave Jones says: “Patients have a right to expect medications prescribed for them are based solely on medical need and not because the physician was given tickets to a sporting event or treated to a lavish golf outing. Illegal and unethical marketing practices put patient health at risk if a medical professional is influenced by the inducements offered by drug makers.”

Bristol-Myers Squibb did not admit wrongdoing in the settlement agreement.

Sean Murray

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