Celgene Announces Settlement Of Civil Litigation

(RTTNews) - Celgene Corp.(CELG) said that it has reached a civil settlement with Relator Brown, the Department of Justice, 28 States, the District of Columbia, and the City of Chicago to resolve the previously disclosed False Claims Act litigation pending in the United States District Court for the Central District of California.

The litigation related primarily to allegations that Celgene promoted Thalomid (thalidomide) for off-label uses before its 2006 FDA approval for newly diagnosed multiple myeloma. The Department of Justice, the States, the District of Columbia, and the City of Chicago declined to intervene in the litigation.

As per the settlement, Celgene will pay a total of $280 million to the United States, 28 States, the District of Columbia, and the City of Chicago to resolve the litigation.

The final settlement includes the resolution of all allegations the Relator made with respect to Thalomid and Revlimid (lenalidomide). Before the parties reached a settlement, the Court dismissed a significant part of the case on a motion for summary judgment, including allegations that Celgene illegally paid doctors to induce them to promote and/or prescribe Thalomid and Revlimid.

Celgene is not required to enter into a Corporate Integrity Agreement as part of the settlement.

Celgene has denied any wrongdoing in this matter, but is settling to avoid the uncertainty, distraction, and expense of protracted litigation.