Bayer settles kickback charges

Wednesday, December 31, 2008

WASHINGTON--Bayer Healthcare has agreed to pay $97.5 million plus interest to settle charges that it paid kickbacks to diabetes suppliers, the U.S. Department of Justice announced Nov. 25. The settlement resolves allegations that the Tarrytown, N.Y.-based manufacturer paid providers to convert their patients to Bayer products. Between 1998 and 2002, Bayer allegedly paid mail-order provider Liberty Medical approximately $2.5 million, disguised as payments for advertising, and $375,000 to 10 other providers.