The Whistleblower Institute announces that Baxter Healthcare Corporation reached an $18 million settlement in a False Claims Act lawsuit.
San Diego, CA -- (SBWIRE) -- 08/28/2017 -- The Whistleblower Institute announces that Baxter Healthcare Corporation reached an $18 million settlement in a False Claims Act lawsuit filed over alleged violations of maintenance regulations for sterile drug products.
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Baxter Healthcare Corporation has agreed to pay $18.158 million to resolve a False Claims Act suit and bypass criminal charges in North Carolina federal court relating to alleged violations of maintenance regulations for sterile drug products.
According to the department of Justice, allegedly, between July 2011 and November 2012, Baxter Healthcare manufactured sterile intravenous solutions in a clean room at a North Carolina facility where air filters in the ceiling had mold. Allegedly, a Baxter employee informed management about the mold but the company did not take action and kept producing the drugs in that clean room for months while the filters that the employee had identified as moldy remained in place. An unannounced inspection by the U.S. Food and Drug Administration found mold on the filters. There was no evidence the IV solutions were affected.
Reportedly, in a deferred prosecution agreement, Baxter admitted to distributing drug products that were adulterated in violation of the Federal Food, Drug, and Cosmetic Act, paying $16 million in penalties and forfeiture and $2.2 million to settle a related False Claims Act civil suit brought in 2013 by a Baxter whistleblower employee.
"Following current Good Manufacturing Practices is essential to ensure the safety and efficacy of our drugs," said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department's Civil Division. "Today's settlement shows that the government will continue to hold companies accountable for failing to fulfill this critically important responsibility."
The lawsuit was brought by a Baxter employee Christopher Wall, who will get $431,535.99 from the proceeds of the civil settlement.
Based in Deerfield, Illinois, Baxter Healthcare Corporation is an American health care company, which primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions.
The Whistleblower Institute is an information portal for current or former employees and other people having insight information about wrongdoing and other illegal activities by individuals either individually or within corporations, through company culture and or within international affairs. Whistleblowers should keep in mind that under the Dodd-Frank Act any person who provides the Securities and Exchange Commission ("SEC") with original information that leads to a successful enforcement action with over $1 million recovered must be awarded between 10%-30% of the total amount recovered. In order to determine the total amount of the reward there are numerous factors that need to be considered. Whistleblower actions are complex and our goal is to guide any whistleblower every step of the way. The Whistleblower Institute is dedicated to partnering with any individual who have information about fraud and we work with many of the best law firms worldwide.
Those who have a similar case or experienced a similar situation or any other wrongdoing within a corporation have certain options and should contact the Whistleblower Institute.
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