Amgen to Pay $24.9M to Resolve False Claims Allegations Re: Kickbacks

California-based biotechnology company Amgen, Inc. will pay the United States $24.9 million to settle allegations that Amgen knowingly caused the filing of false claims to the federal government, the U.S. Department of Justice announced.

Amgen allegedly gave kickbacks to pharmacy providers Omnicare, Inc., PharMerica Corporation, and Kindred Healthcare, Inc. in return for implementation of programs that were designed to switch Medicare and Medicaid patients from competitors’ drugs to Amgen’s version, Aranesp.  The alleged kickbacks took the form of performance-based rebates, and Amgen allegedly encouraged pharmacists and nursing home staff to use Aranesp even for patients who did not suffer from symptoms Aranesp was designed to treat.  Medicare and Medicaid were thus allegedly billed for the cost of drugs that patients did not need and that providers were influenced to prescribe or use.

The lawsuit was originally filed by Frank Kurnik, a former employee of Amgen, under the whistleblower provision of the False Claims Act.  The False Claims Act allows private citizens with knowledge of fraud to sue on behalf of the government, and claim in a share of the recovery.  Kurnik’s reward has not yet been determined.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.