A drug kickbacks lawsuit filed against Galena Biopharma Inc. has reached a settlement agreement of $7.55 million after a period of negotiation. This settlement brings an end to the federal lawsuit over illegal drug kickbacks, as well as the whistleblower lawsuit that alerted the government to the issue in the first place.

According to the government’s lawsuit, Galena used drug kickbacks and other incentives to ensure that they would, in turn, prescribe Abstral. Doctors could be paid $5,000 or more to simply attend a so-called “advisory board.” One pharmacy was allegedly paid $92,000 because of one of these incentives agreements.

And the drug kickbacks weren’t just monetary. The Department of Justice also claimed that doctors at clinics that frequently prescribe Abstral could be given dozens of free meals.

The whistleblower lawsuit was originally filed by Lynne D., who alleged that Galena used suspect marketing practices and partnered with two doctors who have since been convicted of other illegal activity, running an Alabama pill mill. According to Lynne’s lawsuit, around 90 percent of the prescriptions filled at the pharmacy between April 2012 and May 2015 were for Abstral or Subsys.

For her part in the lawsuit, the whistleblower will receive just over $1.2 million of the settlement funds–around 15 percent of the total settlement amount. Her attorneys’ fees and other costs will also be covered.

This settlement agreement does not indicate admission of liability from the defendant, but simply resolves allegations out of court.

“Given the dangers associated with opioids such as Abstral, it is imperative that prescriptions be based on a patient’s medical need rather than a doctor’s financial interests,” said acting Assistant Attorney General Chad A. Readler from the Justice Department’s Civil Division. “The Department of Justice intends to vigorously pursue those who offer and receive illegal inducements that undermine the integrity of government health care programs.”

Filing a Whistleblower Lawsuit

Whistleblowers are individuals who report the fraud and illegal activities against the government of their current or former employers. Many employees choose to come forward as whistleblowers because they do not feel right about their employer’s actions. A whistleblower lawsuit can be filed while working at the company, but can also be filed after having left the company.

While a person considering becoming a whistleblower may be worried that they will face retaliation for their actions, there are additional laws in place to protect whistleblowers from such retaliation. Plus, a successful whistleblower is typically given a substantial reward—often between 15 and 30 percent of the money recovered in the subsequent whistleblower lawsuit.

If you believe you have witnessed some kind of illegal activity against the government by your current or former employer, such as drug kickbacks, you may be able to file a whistleblower lawsuit (also known as a qui tam lawsuit) on behalf of the government.