Celgene Settles $280 Million Lawsuit over Off-Label Marketing Campaigns

Celgene reached a civil settlement with the Department of Justice and 28 states, as well as Washington D.C. and the city of Chicago, agreeing to pay $280 million to resolve a case over off-label marketing claims for two cancer treatments -- Thalomid (thalidomide) and Revlimid (lenalidomide).

The whistleblower lawsuit was filed by a former Celgene sales manager, Beverly Brown, who alleged the company submitted false claims for unapproved uses to Medicare and state health care programs. The presiding California federal court had previously dismissed allegations that Celgene illegally paid doctors to prescribe Thalomid and Revlimid.

Celgene continues to deny any wrongdoing, but it agreed to pay $259.3 million to the U.S. and $20.7 million to the 28 states and the District of Columbia. California will receive $4.7 million, more than any other state. Celgene is expected to pay the settlement Wednesday, according to the DOJ.