$30M Settlement with Bristol-Myers Squibb in California Whistleblower Suit

California Insurance Commissioner Dave Jones reached a $30 million settlement with pharmaceutical giant Bristol-Myers Squibb earlier this month over allegations of drug marketing fraud and physician kickbacks.

The settlement stems from charges in a whistleblower lawsuit filed by three former Bristol-Myers Squibb sales representatives. Jones joined the whistleblowers in the suit, which alleged that Bristol-Myers Squibb violated the California Insurance Frauds Prevention Act by employing and using sales representatives for the purpose of defrauding private commercial health insurers by using kickbacks to procure patients or clients.

The kickbacks were reportedly designed to increase physician prescriptions of several drugs produced by Bristol-Myers Squibb.

In addition to the $30 million payment, the settlement agreement with the commissioner requires Bristol-Myers Squibb to affirm its commitment to abiding by California laws regulating its sales representatives’ interactions with doctors, including compliance with pertinent provisions of the California Health and Safety Code and the California Insurance Frauds Prevention Act.

Bristol-Myers provided the following statement:

“We have resolved this matter with the California Department of Insurance, and are committed to the highest standards of business integrity, vigilance and ethics across our organization. Bristol-Myers Squibb denies any wrongdoing in this matter and we are pleased to put this matter behind us so that we can focus on making transformational medicines for patients battling serious diseases. The Company has chosen this path to achieve a prompt and full resolution of the claims based on alleged marketing practices in California that purportedly occurred from 1997-2003, and to ensure that we continue to focus on our mission of discovering, developing, and delivering innovative medicines to patients with serious illnesses.”