Serono Laboratories, Inc., EMD Serono, Inc., Merck Serono S.A., and Ares Trading S.A. have agreed to pay a $44.3 million settlement in connection with false claims allegations stemming from marketing of the drug Rebif.

A 2005 claim filed by whistleblower Tim Amato alleges that between 2002 and 2010, Serono used kickbacks and other unlawful measures to promote sales of the multiple sclerosis drug. Healthcare providers were allegedly provided services such as medical and educational grants, charitable contributions, sponsorships, expense reimbursement and speaking engagements, among others. Consequently, claims submitted to programs like Medicaid and Medicare were deemed fraudulent given the company’s promotional tactics.

The settlement will be divided between the U.S. government and the states. The federal share will be $34.6 million, while states will receive $9.7 million for respective Medicaid claims. Mr. Amato will be awarded $5.19 million of the federal recovery.