The Whistleblower Institute announces that Galena Biopharma Inc reached a $7.55 million settlement in a whistleblower lawsuit.
San Diego, CA -- (SBWIRE) -- 09/27/2017 -- The Whistleblower Institute announces that Galena Biopharma Inc reached a $7.55 million settlement in a whistleblower lawsuit over paying kickbacks to doctors to induce them to prescribe its fentanyl-based drug Abstral.
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 at firstname.lastname@example.org or call: 619-452–1218. There are no costs or obligations to you.
A settlement has been reached to resolve False Claims Act allegations against Galena Biopharma Inc.
The allegations arose from a lawsuit that claimed Galena Biopharma Inc paid kickbacks to doctors to induce them to prescribe its fentanyl-based drug Abstral.
According to the government, Galena allegedly paid multiple types of kickbacks to induce doctors to prescribe Abstral, including providing more than 85 free meals to doctors and staff from a single, high-prescribing practice; paying doctors $5,000, and speakers $6,000, plus expenses, to attend an "advisory board" that was partly planned, and attended, by Galena sales team members and paying approximately $92,000 to a physician-owned pharmacy under a performance-based rebate agreement to induce the owners to prescribe Abstral.
Allegedly, Galena also paid doctors to refer patients to the company's RELIEF patient registry study, which was nominally designed to collect data on patient experiences with Abstral, but acted as a means to induce the doctors to prescribe Abstral.
"Given the dangers associated with opioids such as Abstral, it is imperative that prescriptions be based on a patient's medical need rather than a doctor's financial interests," said Acting Assistant Attorney General Chad A. Readler of the Justice Department's Civil Division. "The Department of Justice intends to vigorously pursue those who offer and receive illegal inducements that undermine the integrity of government health care programs."
The whistleblowers' share of the settlement will be $1.2 million.
Based in San Ramon, California, Galena Biopharma Inc is a publicly traded pharmaceutical company.
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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