Many lawsuits have been filed against Amgen Inc. alleging that the company offered kickbacks to medical providers to increase revenue of its drug Aranesp that is said to prevent anemia. In a Massachusetts federal court, “the state charged Amgen sales representatives with encouraging medical doctors and health providers to bill insurers for Aranesp that the practitioners received free from the company”. “The Amgen practice is reported to have cost tax-payer funded Medicaid programs and other insurers millions of dollars in overpayments”. Reports released stated that along with Amgen, two other defendants, ASD Healthcare and International Nephrology, conspired to recommend “illegal inducements” to doctors and providers to curtail their revenue of the drug. Arenesp is prescribed to anemia patients who struggle with kidney disease and cancer. Amgen has been accused of violating many laws, which include: fraud, false claims, and unjust-enrichment statutes. Settlements propose collecting damages from the company that could amount to $10,000 for every violation made.
Source: Los Angeles Times