Celgene has agreed to pay $280 million in order to settle a lawsuit accusing the company of promoting cancer drugs Revlimid and Thalomid for off-label uses, said the U.S. Justice Department.
The pharma company will pay nearly $21 million to 28 states and the District of Columbia and $259 million to the United States. The suit, which alleged it was violating the federal False Claims Act by submitting fraudulent claims to state healthcare programs, was filed by Beverly Brown, a former sales representative at Celgene.
According to Celgene, it has done nothing wrong but has chosen to settle to avoid the distraction of expensive and protracted litigation.
Brown's lawsuit alleged that Celgene had promoted Revlimid and Thalomid as cancer treatments for which they were not approved.
Read the New York Times report