Genentech Inc. and OSI Pharmaceuticals LLC agreed to pay $67 million to resolve charges they violated the False Claims Act by making misleading statements about the effectiveness of the cancer drug Tarceva. According to the government, Genentech and OSI made misleading representations to physicians and other health care providers about the effectiveness of Tarceva when there was little evidence to show that Tarceva was effective to treat those patients unless they also (i) had never smoked or (ii) had a mutation in their epidermal growth factor receptor, which is a protein involved in the growth and spread of cancer cells. The allegations originated in a whistleblower lawsuit filed by former Genentech employee Brian Shields under the qui tam provisions of the False Claims Act. He will receive a whistleblower award of approximately $10 million out of the proceeds of the government’s recovery. Whistleblower Insider
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