Biogen agrees to pay $900M to settle whistleblower lawsuit
zimmytws/iStock via Getty Images


Biogen (NASDAQ:BIIB) announced on Wednesday that the company reached a deal to pay $900M as a settlement of a whistleblower lawsuit related to allegations of kickbacks.
Michael Bawduniak, a former Biogen (BIIB) sales rep, had filed the lawsuit alleging that before 2015 the company conducted bogus meetings and speaking programs where it offered kickbacks to raise prescriptions of multiple sclerosis drugs, Tecfidera, Tysabri, and Avonex.
The plaintiff sought more than $981M in damages Biogen (BIIB) disclosed in its latest 10-K filing, adding that a trial in this regard was scheduled for 3Q 2022.
Biogen (BIIB) said that the agreement in principle does not amount to an admission of liability, and the deal is yet to be finalized.
âThis agreement in principle does not include any admission of liability and is subject to the negotiation of final settlement agreements and documents," the management disclosed in the earnings release.
However, the company recognized the 900M charge for its 2Q 2022 financials which indicate a ~8% YoY decline in the bottom line.