Celgene resolves False Claims Act case related to alleged off-label promotion of Thalomid® and Revlimid®
Clients Celgene Corporation
Jones Day represented Celgene Corporation in a False Claims Act lawsuit related to allegations that Celgene promoted the cancer treatment drugs Thalomid® and Revlimid® for off-label uses prior to their FDA approval for such uses, and paid kickbacks to physicians in order to get them to promote and prescribe those drugs. The matter was investigated criminally and civilly by the Department of Justice and certain states, and, following presentations by Jones Day and co-counsel, the government authorities decided not to seek criminal charges and declined to intervene in the civil action.
Following the government's declination, the case was unsealed and litigated by the relator, who claimed more than $40 billion in damages and penalties on behalf of the federal government and states. After successful motion practice by Jones Day and co-counsel(including dismissal of the kickback allegations and dismissal of the majority of claims on a motion for partial summary judgment and a motion to strike), Celgene was able to resolve the matter. The resolution included a $280 million payment and did not impose a corporate integrity agreement.
United States ex rel. Beverly Brown v. Celgene Corp., No. 10-cv-03165 (C.D. Cal.)