Largest-Ever $266.4 Million Whistleblower Award in Biogen False Claims Act Suit

BOSTON, Sept. 27, 2022 /PRNewswire/ -- Setting a new standard for whistleblower awards, the United States, state governments and Greene LLP client Michael Bawduniak have agreed to $266.4 million in awards to Bawduniak from a recovery from Biogen Inc., the largest such award in the history of the United States. The previously-announced $900 million settlement itself broke records when it was announced in July as the largest False Claims Act settlement ever secured without government intervention.

The $250 million federal award to Bawduniak represents the single highest whistleblower award under any government program, shattering the previous False Claims Act records for largest award to single relator ($96 million in 2010), and largest award from a single settlement ($170 million to whistleblowers in four suits in 2014). The award to Bawduniak also exceeds the highest-ever awards paid under the whistleblower programs of the IRS ($104 million in 2012), the SEC ($114 million in 2020), and the CFTC (nearly $200 million in 2021).

Under the qui tam provisions of the False Claims Act, whistleblowers with knowledge of financial fraud on the United States can sue on the government's behalf as "relators."  After an initial period when the case is under seal, the government must decide whether or not to intervene in the case. If the government does not elect to intervene, the statute authorizes relators to continue to litigate the case. The False Claims Act provides that relators are awarded 15%-25% of any recovery in intervened cases, and 25%-30% in cases in which the government did not intervene. 

The United States agreed to pay Bawduniak a 29.63% relator share in recognition of his role in the non-intervened, 10-year suit. The several states that awarded a relator share did so at percentages of 29.63% or 30%, except for the State of California, which agreed to a 48.15% relator share. Bawduniak was awarded a total of $16.4 million in relator shares under state qui tam statutes, in addition to the federal award.

"The relator share awarded by the United States is a recognition of our client's efforts and years of litigation efforts," said Thomas M. Greene, managing partner of Greene LLP. "The 29.63 relator share percentage, in particular, is a gratifying reminder that few law firms can match our dedication and skill in pursuing False Claims Act cases."

Greene LLP has a history of winning settlements for the government in False Claims Act cases, including a string of other cases pursued without government intervention. In 2004, Greene concluded the first FCA case to allege that off-label promotion of drugs caused damages to the government with a settlement of $430 million in civil fines and criminal penalties with Pfizer. The firm has four other successes in the last decade after multi-year efforts in declined cases.

Michael Bawduniak was represented in the False Claims Act suit by Greene, Michael Tabb, Ryan P. Morrison, Tucker D. Greene, Simon Fischer, Eugenie Reich, and Kiel Green, all of the Greene LLP firm. Greene LLP is a complex civil litigation firm in Boston of seven attorneys, specializing in representing qui tam whistleblowers in False Claims Act litigation and employing a low-volume, high-attention approach to litigation. Each of the firm's partners have over twenty years of experience in False Claims Act litigation, pioneering innovative theories of recovery.

Contact: Thomas M. Greene
Greene LLP
(617) 261-0040
[email protected]

SOURCE Greene LLP