Taxpayers Against Fraud Education Fund is a nonprofit, public interest organization dedicated to combating fraud against the Federal Government through the promotion and use of the Federal False Claims Act and its qui tam provisions.
Subscribe to Our FREE Newsletter Common Types of Fraud:   Fast Facts about the FCA   The Government Counts on Whistleblowers:  More than 80 percent of the False Claims Act cases that are now pursued by the U.S. Department of Justice are initiated by whistleblowers.   Cheaters Pay Whistleblower Awards: Companies cheating the U.S. Government pay whistleblower rewards – not one dime comes from U.S. taxpayers.  The reason for this is that the False Claims Act calls for triple damages so that the Government can be made whole, not only by recouping the cost of whistleblower awards, but also by recovering the cost of investigations, prosecutions, and lost interest.   Big Cases Require Big Investments: Big fraud cases prosecuted under the False Claims Act often require many years of litigation and investigation.  For example, the whistleblower in the first Columbia-HCA fraud case spent 13 years pursuing his False Claims Act lawsuit.  The law firm that spearheaded this case invested more than 85,000 hours in the case.  In the end, the various frauds perpetrated by Columbia-HCA returned over $1.5 billion to the U.S. Treasury.   Frivolous Lawsuits are Discouraged:  Because most False Claims Act lawyers work on a contingency basis, they only get paid if they win. This means that they are unlikely to invest time, money and energy building a case that they themselves do not feel will be productive.  In addition, under the False Claims Act, a complainant can be required to pay the defendants attorney’s fees if the court finds that the claim was frivolous or brought primarily for purposes of harassment.   The False Claims Act Provides Some Employment Protections:  If an employee is fired, demoted, harassed, or otherwise discriminated against for filing a False Claims Act suit, the law provides for reinstatement, double back pay, and compensation for special damages, including litigation costs and reasonable attorneys’ fees.   Drug Company Frauds are Pervasive and Large:  Over 180 pharmaceutical fraud cases, covering more than 500 drugs, are now under investigation by the U.S. Department of Justice under the False Claims Act.  Settlement of just 16 drug manufacturing cases (all those resolved to date) has returned over $4 billion to the U.S. Government and the 50 states.   Routine Mistakes and  Errors are Not  Prosecuted Under the  False Claims Act: The False Claims Act is not used to correct minor billing mistakes or errors, as these frauds are not systematic and rarely amount to truly large sums of money.      Major Cases Under Watch:   Nominal Pricing Fraud: FCA cases involving violations of the nominal pricing exception have been filed.  Possible cases involve statins, proton pump inhibitors, non-steroidal anti-inflammatory drugs, and others.   Iraq War Fraud:  Numerous large cases dealing with contractor fraud in Iraq are reported to be under investigation, but remain under seal.   Anti-Psychotic Drugs:  Investigations about the off-label marketing of Zyprexa, Risperdal and Seroquel are under way.   These three drugs represented combined sales of $12 billion in 2006.    Average Wholesale Price Fraud:  The U.S. Government has joined three cases likely to go to trial this summer:  Abbott, Dey and Roxane Pharmaceuticals.  More than 50 other companies face similar charges in Boston.   University of Phoenix:  The Supreme Court has denied cert., and the defendants concede they face a billion dollars in liability.   Outlier Fraud:  Several large outlier fraud investigations against hospitals are under investigation.   Newsletters   December 22, 2009 n University of Phoenix to Pay $78.5 Million n Schering-Plough Pays $69 Million n NY Home Health Fraudsters to Pay $24 Million n Our Lady of Lourdes Health Care Services to Pay $8 Million December 4, 2009 n Four Companies pay $39 Million to Settle California Whistleblower Case n NJ Hospital Pays $3 Million n Sports Clinic Pays $3  Million n Three FCA Cases In Orbit November 24, 2009 n DoJ Recovers Over $5.6 Billion But Announces Just $2.4 Billion n Supreme Court Takes Up FCA Case n Merck Wins Summary Judgment n DoJ Joins Katrina-related Suit n NJ Hospital to Pay $3 Million November 17, 2009 n Massive Food Fraud in Iraq n $47 Billion in Medicare Bad Billing? n Tenet's Sulzbach vs.  the U.S. n Lilly to Pay Utah $24 Million n Whistleblower Given No Credit November 10, 2009 n Guidant Agrees to Pay $296 million n Omnicare and Ivax Pay $112 Million for Kickbacks n Defective Bunker Buster Fuses n Abbott Faces Depakote Probe n An SEC Whistleblower Bill on the Horizon? November 2, 2009 n Astra Zeneca Reserves $520 Million for Seroquel Settlement n Fifteen States Join Amgen FCA n Enforcement Resources Needed n Texas Hospital Group to Pay $27 Million n Senators Introduce Anti-Fraud Bill n Stryker Biotech Indicted Over Product Promotion n Energy Saving Fraud? n Apollo Reserves $80.5 Million  October 20, 2009 n Massive California Pension Fraud Alleged n Mylan to Pay $121 Million n MPC Products to Pay $25 Million n AstraZeneca Hit With $14.7 Million Verdict in Kentucky n Alabama Supreme Court Overturns Three Jury Verdicts Against Pharma n E-Rate Fraud Settlement n Over 1,000 Qui Tams in Backlog n IRS Whistleblower Stats   October 15, 2009 Taxpayers Against Fraud 2009 Award Winners n Lawyer of the Year: Frederick M. Morgan, Jennifer M. Verkamp, Scott A. Powell, and Don McKenna n Whistleblower of the Year: Thomas Cantor n Honest Abe Integrity in Government Award to Senator Patrick Leahy (D-VT) and Congressman James Sensenbrenner   September 30, 2009 n Lilly settles with Eight States n More Kyphon Settlements n Alan Grayson on Bigger Fish n Payola Politics and the FDA? n Nelnet Whistleblower  n Fruit Company Settles FCA n CRS on the FCA September 22, 2009 n Arizona Settles AWP Drug Cases n SAIC Faces Potential $230 Million Liability n Massachusetts Sues Housing Developer n Pinkerton to pay $1 million in FCA case   September 15, 2009 n Biovail to Pay $25 Million n An FCA for Wall Street? n Top 15 Drugs Sales in 2008 September 2, 2009 n Pfizer Settles Largest False Claims Act Case Ever   August 25, 2009 n Quest Diagnostics Pays Another $12.5 Million n Covenant Pays $4.5 Million n Jim Sheehan Seeks Dead People n Convicted Murderer Pleads Guilty to Medicare False Claims n GPOs Under the Glass   August 14, 2009 n Westchester Must Build Housing to Help End Discrimination n Boeing to Pay in Two Cases n Dynamics to Pay $15 Million n Katrina Case Moves Forward n Profile In Integrity August 6, 2009 n State Zyprexa Deal in the Wings n Baxter Pays $6.8 Million to IL n Computer Assets to Pay $350,000 n Tulare Healthcare Settlement n Allegran's Botox Problem July 21, 2009 n NY State and NY City Pay Record Medicaid Settlement n Excluded Doc Bills Millions n Lockheed Faces Suit Over F-35 n Spinal Fraud on National Scale n Florida Doctor Pays $1.7 Million n Foreign Banks Kick Out U.S. Tax Cheats n Six-fold FCA Dam   July 14, 2009 n The F-22's Defective Skin n Burn Bags Mean Smoke and Fire n An SEC Whistleblower Program? n Michigan Medicaid Inspector General? n Did DoJ Settlement With Beazer Send the Wong Message? n Robbing Medicare and Medicaid Is Better Than Robbing Banks   July 7, 2009 n DoJ Joins Suit Against SAIC n Massive DME Fraud Scheme n Yale Hospital Pays $3 Million n Beazer to Pay Many Millions n LSU Pay $700,000 n An SEC  Whistleblower Program?   June 30, 2009 n Major Settlements Ahead n Major Cases in the Backlog n Major Cases Settled So Far This Year June 16, 2009 n Bone Growth Fraud? n DoJ Files on Mortgage Fraud n WV Seeks $2 Billion from Lilly n New Jersey University Pays $2 Million for Double Billing n Oklahoma Ortho Center to Pay $3.5 Million n Hawaiian Hospital Settles FCA June 3, 2009 n Aventis Settles for $95.5 Million n Pogue Case Against Healthways Settles for $40 Million n Crooks Worry About Tougher FCA n Senator Charles Grassley on Bipartisan Support for Amendments to the False Claims Act n Documents Show AstraZeneca Off-label Marketed Seroquel n URS Unit Pays $1.7 Million n Alabama Hits Hard   May 22, 2009 n President Signs False Claims Act Amendments Into Law n AstraZeneca Faces Heat n DoJ's Tony West Says FCA Enforcement a High Priority n Regency Pays $4 Million n HealthEast to Pay $2.3 Million n Minnesota Gets a State FCA   May 12, 2009 n President Signs False Claims Act Amendments Into Law   May 12, 2009 n House Strengthens FCA n DoJ Joins Lawsuit Against Wyeth over Protonix n More For Your Money With the FCA n DoJ Budget Increase n The High Cost of Low Morals May 6, 2009 n House Passes Fraud Enforcement and Recovery Act:  367 to 59   May 5, 2009 n WellCare to Pay $80 Million n Forest Reserves $170 Million n Maxxam Pays for Forest Fraud n Shipping Firm to Pay $26 Million n DoJ Joins HSUS Lawsuit Against Slaughterhouse n KBR Is Named in Majority of Iraq Frauds Under Investigation n Fake Merck Peer-reviewed Journal Printed by Elsevier   April 28, 2009 n Senate Says "Yes" to Integrity and "No" to Fraudsters n House Judiciary Votes Out FCA Corrections Act n Massive TARP Fraud Ahead? n Katrina Fraud Settlement n Alta Colleges to Pay $7 Million April 21, 2009 n Quest to Pay $302 Million n Massive Orthotics Fraud n HUBZone Fraud n Supreme Court on Eisenstein   April 14, 2009 n Northrop to Pay $325 Million in Defective Satellite Case n NetApp to Pay $128 Million n Custer Battles Must Pay April 2, 2009 n TAF Testifies in Support of FCA Amendments n California Sues Seven Labs  n Par Pharma Subpoenaed n Radiology Firm to Pay $2 Million n Houston Hospital to Pay $9.9 Million for Outlier Fraud n A Three-Legged Watchdog n Sikorsky to Pay $2.9 Million   March 17, 2009 n Risperdal Marketed Off-label n Healthways Hopes to Settle n Odyssey Under Investigation n Home Healthcare Fraud n San Mateo County to Pay $6.8 Million for DSH Fraud n Cornell to Pay $2.6 Million n WV Hospital to Pay $690,000   March 10, 2009 n US Joins Against NM Hospitals n Massive Amgen Fraud Case n DoJ Joins Against Forest n FDA Says Ranbaxy Faked Data n NY Medicaid Fraud Recoveries Exceeding Expectation   February 24, 2009 n Pharma Lawyers Now Driving Billion Dollar Settlements n Shipping Firm to Pay $26 Million n DoJ Joins FCA Suit Against Scios and Johnson & Johnson n Liberty Medical ... Again n Katrina Case Reinstated n IRS Whistleblower Case Settled for $780 Million n Pennsylvania Needs an FCA n AT&T Pays $8.2 Million n Million Dollar Adult Diaper Fraud   February 10, 2009 n Glaxo's $400 Million Reserve n Jail Pays Kickbacks to Judges n A Secret Settlement? n Heavying Up to Fight Fraud n Medicare Losing Billions n SEC Can Learn from the FCA   January 27, 2009 n Pfizer Reserves $2.3 Billion n Investing in Fraud Busting n Tony West to Head DoJ Civil n Top Purdue Pharma Executives Banned for 15 Years   January 22, 2009 n Lilly Pays Record $1.4 Billion for Zyprexa n FDA Approved Hundreds of Devices Without Review n AL Hospice to Pay $25 Million n Rite Aid Pays $5 Million for Drug Diversion   January 07, 2009 n Ad Agency to Pay $15 Million n Treatment Center Fraud n David Ogden, Deputy Attorney General n A Look Into WellCare’s Fraud n Another Bulletproof Vest Settlement n Feds to Bail Out Hedge Funds? n Teva Pays $7 Million in Mass.   December 30, 2008 n New York Invests to Recover n Yale to Pay $7.6 Million n Alabama Sues CMS n Kickbacks for Iraq Contracts n Decertifying Fraudsters n Ohio is Broke and Asleep   December 10, 2008 n Helicopter Maintenance FCA n Court Asks for DoJ Input n Final FAR Ruling n Hearing the Whistleblower n "Material Effect" Ruling Upheld   December 5, 2008 n MedQuist to Pay $6.6 Million n $11 Million for Mortgage Fraud n Condell to Pay $36 Million n TN Hospitals Pay $5.9 Million n Jaw Dropping "Error" Rates n Investigating IT Price-Gouging n Rumors of UBS Tax Settlement n The High Cost of Free Samples n Seeking Doctor Relators   November 25, 2008 n Huge FHA Frauds on Horizon n Bureaucrats Costing Millions n Mining a Fraud Seam n Judge says CMS Can Stop Paying Suspected Fraudsters   November 12, 2008 n Home Health Care Fraud in FL n $52 Million for Bad Blades n Pearson Pays $5.6 million n Medtronic Under Pressure n WI FCA Qualifies Under DRA   November 12, 2008 n FY 2008 FCA Statistics n Taxpayers Pay for Both Sides of Wall Street Fiasco n Vytorin in 35-state Off-Label Investigation   November 5, 2008 n Barack Obama, FCA Attorney n Schering's Big Loss in MO n Defective Flares a Threat n Blowing the Whistle at DoD? n Adult Day Care Fraud October 28, 2008 n Lilly Reserves $1.4 Billion for Off- Label Zyprexa Case n Jury: Unum Defrauded SSDI n $160 Million in Utilities Case n U.S. Sues FHA Lender n Medicare Outlier Case Settled in NJ   October 21, 2008 n NY's Stolen Medicaid Money n New Orleans Medicaid Recovery n 5 Pharma Co's Settle With AL n Fox in Charge of Hen House? n Medical Device Kickbacks   October 7, 2008 n Lilly Consumer to Settlement a Prelude to FCA? n WellCare In the Crosshairs n Armor to Pay $30 Million n Uncle Sam vs. McKesson Corp. October 1, 2008 n Cephalon Pays $425 Million n Unum SSD Fraud Goes to Trial n EPO Linked to Stroke Deaths n Walgreens to Pay $9.9 Million n Ranbaxy PEPFAR Drugs Halted                                     u The Complete Newsletter  Index		Novartis To Plead Guilty With $397 Million in Litigation Reserves Swiss drug maker Novartis has said it will plead guilty to criminal fraud charges related to the company's off-label promotion of the epilepsy drug Tripletail, and will pay a $185 million fine.  Novartis' Trileptal problems are only part of the equation, however; Novartis is also being investigated for kickbacks and off-label marketing related to Diovan, Exforge, Sandostatin, Tekturna and Zelnorm.  In a sign that a global settlement may be at hand, Novartis has said that it has increased its litigation reserve from $318 million to $397 million.>> To read more |  Jan 25, 2010 DoJ Joins Case Against J & J DoJ has joined two False Claims Act cases against drug manufacturer Johnson & Johnson and its subsidiaries, alleging the companies paid millions in kickbacks to Omnicare in order to get Omnicare to operate as an "extension of [Johnson & Johnson] sales force" in dispensing the anti-psychotic drug Risperdal to nursing home patients. >> To read more |  Jan 25, 2010 Chevron to Pay $45 Million Chevron has said it will pay $45.5 million to settle a False Claims Act case charging the company with underpaying royalties for natural gas pumped from wells on federal and Indian land.  The lawsuit was originally filed in 1996 by Harrold Wright, who is now deceased.  Mr. Wright's $12.3 million relator's share will go to his heirs.  >> To read more |  Jan 13, 2010 First IRS Whistleblower Payment The law offices of  Kenney & McCafferty report the first major IRS Whistleblower Office payment of $5.5 million to one of their clients for his work in reporting a major tax fraud seven years ago. This is a partial payment; even more money is to be recovered ahead! >> To read more |  Jan 13, 2010 Dental Company Nailed for $24 Million Medicaid Fraud National Dental Management Company has agreed to pay $24 million to resolve three FCA cases charging the company with billing for medically unnecessary dental services performed on children insured by Medicaid.  Three relators will split $2.4 million from the federal share of the settlement.  >> To read more |  Jan 25, 2010 Big Iraq Settlement on Horizon? A $600 million Iraq war fraud settlement may be on the horizon. Kuwait's Public Warehousing Company (also known as Agility) appears to have told Kuwaiti newspaper Al-Qabas that the company expects to pay between $500 million and $600 million to settle a food-fraud case, provided the U.S. Government agrees to the terms.  >> To read more |  Jan 25, 2010 Boston Scientific To Pay $22 Million Boston Scientific has agreed to pay $22 million to resolve a False Claims Act case in which its Guidant subsidiary was charged with paying kickbacks of $1,000 to $1,500 to doctors in order to get them to use their heart pacemakers. >> To read more |  Jan 25, 2010 University of Phoenix to Pay $78.5 Million The University of Phoenix has agreed to pay $67.5 million to the U.S. Government, plus $11 million in private attorneys’ fees, to settle a case filed by two whistleblower who accused the school of violating Dept. of Education rules prohibiting schools from accepting federal student financial aid while paying admissions counselors cash incentives based on the number of students recruited.  This is the second-largest FCA settlement in a non-intervened case.  >> To read more |  Dec 22, 2009 Schering-Plough Pays $69 Million Schering-Plough has agreed to pay $69 million to settle FCA lawsuits in which the company is charged with inflating the price of Albuterol and other drugs in order to collect millions of dollars in overpayments from California and Florida's Medicaid programs.  The lawsuits were filed by Ven-A-Care of the Florida Keys on behalf of California, Florida, and the federal government, and were 11 years coming to resolution. >> To read more |  Dec 22, 2009 New York City Home Health Care Companiesto Pay $24 Million Three New York City home health agencies have agreed to pay $24 million to settle False Claims Act cases charging the companies with overcharging Medicaid for services provided by hundreds of home health aides who had little or no required training.  >> To read more  |  Dec 22, 2009 Our Lady of Lourdes Health Care Services to Pay $8 Million Our Lady of Lourdes Health Care Services Inc., the parent company of two New Jersey hospitals, has agreed to pay $8 million to resolve allegations the hospitals defrauded Medicare by unnecessarily inflating charges to obtain “outlier payments.” >> To read more |  Dec 22, 2009 DoJ Recovers Over $5 billion But Announces Just $2.4 Billion in "Official" FCA Recoveries Fiscal Year 2009 has been a record year in False Claims Act recoveries, with well over $5.6 billion in overall recoveries announced.  So why do "official" DoJ numbers show only $2.4 billion in False Claims Act recoveries?  Simple:  The U.S. Department of Justice does not count criminal recoveries (in the Pfizer matter alone, this was $1 billion), nor do they count money disbursed to the states in settlements (about 45% of all money collected in Medicaid cases), nor do they count money not actually collected this Fiscal Year. Bottom line:  Total "official" False Claims Act recoveries in 2009 were $2.4 billion, though more than $5 billion in False Claims Act case recoveries were announced by Uncle Sam and the States. |  Nov 19, 2009  Omnicare and Ivax Pay $112 Million; DoJ Proceeds Against Nursing Home Chains DoJ has announced a $112 million settlement with Omnicare, to resolve multiple whistleblower lawsuits related to kickbacks. The FCA lawsuits allege Johnson & Johnson paid Omnicare and two nursing home chains so doctors would prescribe Risperdal, an antipsychotic drug, to nursing home patients for which it was an improper medication.  In addition, IVAX Pharmaceuticals paid $8 million in kickbacks to Omnicare to facilitate a drug-switching scheme.  Finally, Omnicare, and two nursing home chains conspired to have Omnicare pay $50 million in exchange for Omnicare getting the contract to deliver pharmacy services to the nursing homes. >> To read the DoJ Press Release |  Nov 3, 2009 Astra Zeneca Reserves $520 Million for Seroquel Settlement Astra Zeneca has reserved $520 million in expectation of  settling two False Claims Act lawsuits over the off-label marketing of Seroquel, an atypical anti-psychotic medication. >> To read more |  Nov 2, 2009   Fifteen States Join Amgen CA No longer content to always let Uncle Sam lead in the war against fraud, 15 state Attorneys General have come out swinging, joining a massive False Claims Act lawsuit against Amgen, charging the company with a systematic program of kickbacks designed to increase Medicaid costs through the illegal promotion of anti-anemia drug Aranesp.  >> To read more |  Nov 2, 2009 Enforcement Resources Needed The latest Health Care Fraud and Abuse Control (HCFAC) report notes that in FY 2008, the DoJ opened 843 new civil health care fraud investigations and had 1,311 civil health care fraud matters pending.   The report also notes that in FY 2008 the HCFAC budget was $255 million.  Of this total, $121 million went to the FBI, $80 million went to HHS, $30.4 million went to the 94 U.S. Attorneys, $15.5 million went to the Civil Division, and $3.08 million went to the Criminal Division.  >> To read more |  Nov 2, 2009 Texas Hospitals to Pay $27 Million South Texas Health Systems has agreed to pay $27.5 million to settle claims it paid kickbacks to doctors who referred patients to hospitals within the group. Whistleblower Bruce Moilan will receive $5.5 million for his help in prosecuting the case. >> To read more |  Nov 2, 2009 Senators Introduce Anti-Fraud Bill Senators Patrick Leahy (D-VT), Senators Arlen Specter (D-PA), Ted Kaufman (D-DE), Herb Kohl (D-WI), Chuck Schumer (D-NY) and Amy Klobuchar (D-MN), have introduced the Health Care Fraud Enforcement Act of 2009 which would increase sentencing guidelines for health care fraud, clarify that health care crimes are considered fraud no matter where they are codified in the law, clarify that health care kickbacks are false claims under the False Claims Act, and restore the original intent as to scienter, while increasing antifraud enforcement funding by $20 million per year through 2016.  >> To read more |  Nov 2, 2009 Stryker Faces Promotion Investigation A federal grand jury has indicted Stryker Biotech in a case involving two devices made for spinal and long bone surgeries which were promoted for applications that were not approved by the FDA.  >> To read more |  Nov 2, 2009   Apollo Reserves $80.5 Million  The University of Phoenix (Apollo Systems) has taken a pre-tax charge of $80.5 million in expectation of settling an FCA case dealing with illegal incentive recruitment.  In FY the University of Phoenix derived 86 percent of $3.77 billion in revenue from federal grants and loans, up from 48 percent in 2001.  >> To read more |  Nov 2, 2009   Massive California Pension Fraud Alleged California Attorney General Jerry Brown has joined a False Claims Act suit against State Street Bank alleging almost $200 million in illegal overcharges and penalties charged to CALPERS, the largest U.S. defined-benefit public pension fund, and the California State Teachers’ Retirement System. >> To read more |  Oct 20, 2009 Mylan to Pay $121 Million Mylan, a generic drug maker, has agreed to pay $121 million to settle a long-standing False Claims Act case brought by Ven-a-Care of the Florida Keys. >> To read more |  Oct 20, 2009 MPC Products Corp. Pays $25 Million MPC Products, a Skokie, Illinois defense contractor which supplies the military with parts used in fighter jets and  helicopters, has agreed to pay a fine and damages totaling $25 million to resolve allegations it overcharged the government for more than a decade.  The whistleblower in this case, Joe Caputo, will receive $4.5 million as his share of the award. >> To read more |  Oct 20, 2009 $14.7 Million AstraZeneca Verdict in KY AstraZeneca has been hit with a $14.7 million jury verdict in Kentucky for inflating the cost of prescription drugs sold to the state's Medicaid program.   This was not a False Claims Act case, as Kentucky still has no state False Claims Act. >> To read more |  Oct 20, 2009 Alabama Supreme Overturns Three Jury Verdicts Against Pharma Without benefit of hearing oral argument, the Alabama Supreme Court has overturned three jury verdicts against AstraZeneca ($215 million reduced post-trial to $160 million), GlaxoSmithKline ($81 million), and Novartis ($33 million).  In a 44-page opinion the Court held there was no basis for the state's fraud claims as the State knew that Average Wholesale Price was, in fact, not a true wholesale price average.  The court ruling does not affect the $138 million in settlements the state has reached with other pharmaceutical companies in the AWP litigation.  >> To read more |  Oct 20, 2009 Over 1,000 Qui Tam Cases in Backlog Senator Charles Grassley (R-Iowa) notes that over 1,000 qui tam cases remain backlogged, and that of this number, 985 are health care qui tam cases, including 200 that have to do with pharmaceutical pricing and marketing.  Another 205 qui tam cases allege procurement fraud against the Department of Defense.  >> To read more |  Oct 20, 2009 IRS Whistleblower Program Statistics During FY 2008, the IRS whistleblower office received 476 whistleblower submissions related to 1,246 taxpayers.  Of the 994 complaints where a specific amount of fraud was alleged, 228 alleged underpayment of $10 million or more, and 64 alleged underpayment of $100 million or more. >> To read more (PDF) |  Oct 20, 2009 Taxpayers Against Fraud 2009 Award Winners n Lawyer of the Year: Frederick M. Morgan, Jennifer M. Verkamp, Scott A. Powell, and Don McKenna for their 15-year battle (and $40 million recovery) in the Pogue case against Diabetes Treatment Centers of America.  >> To read more n Whistleblower of the Year to Thomas Cantor for his perseverance in blowing the whistle on Quest Diagnostics, and by so doing saving U.S. taxpayers hundreds of millions of dollars while safeguarding scores of thousands of patiens from unnecessary surgeries and life-shortening over-medication. >> To read more n Honest Abe Integrity in Government Award to Senator Patrick Leahy (D-VT) and Congressman James Sensenbrenner for their bipartisan leadership in shepherding the Fraud Enforcement and Recovery Act of 2009 into law.  >> To read more |  Oct 18, 2009 Lilly settles with Eight States West Virginia, Connecticut, Minnesota, Montana, New Mexico, Louisiana, Utah and Idaho have settled their Zyprexa off-label marketing claims with Eli Lilly, leaving just Arkansas, Mississippi, Pennsylvania and South Carolina.  South Carolina's case is set for trial on Oct. 5th. >> To read more   |  Sept 30, 2009 More Kyphon Settlements Three hospitals in Alabama and three in Indiana have agreed to pay a total of $8.36 million to settle False Claims Act charges they unnecessarily kept thousands of patients overnight in a scheme to bill Medicare up to $7,000 more for each procedure. These cases are related to a Medtronic case settled for $75 million in May of 2008 . >>  To read more  |  Sept 30, 2009 Pfizer Settles Largest FCA Case Ever Pfizer and its subsidiary, Pharmacia & Upjohn Company have agreed to pay the U.S. Government over $2.3 billion to settle a series of False Claims Act cases involving the illegal promotion of several drugs. This is the largest health care fraud settlement in the history of the U.S. Department of Justice. Of the $2.3 billion settlement, $1.3 billion is a criminal fine and forfeiture related to the fraudulent off-label marketing of Bextra.  This $1.3 billion criminal fine is the largest ever imposed in the U.S. A total of $1 billion will be paid to settle civil False Claims Act liabilities involving the following drugs: Bextra (an anti-inflammatory drug) Geodon (an anti-psychotic drug) Lipitor (a cholesterol drug) Norvasc (anti-hypertensive drug) Viagra (erectile dysfunction) Zithromax (antibiotic) Zyrtec (antihistamine) Zyvox (an antibiotic) Lyrica (an anti-epileptic drug) Relpax (anti-migraine drug) Celebrex (anti-inflammatory drug) Depo-provera (birth control) Of the $1 billion paid to settle False Claims Act claims, $668,514,830 will go to the Federal Government, and $331,485,170 will go to the states. Of the $1 billion paid under the FCA, the sums work out as follows: Bextra: $502,524,316 Geodon: $301,462,065 Zyvox: $97,945,019 Lyrica: $48,223,886 Kickback Drugs: $49,844,714 A total of six whistleblowers and their attorneys will receive payments totaling more than $102 million from the federal share of the civil recovery, with additional money to flow as a result of parallel False Claims Act cases filed at the state level.  The six relators and their share are: John Kopchinski: $51,500,999 Stefan Kruszewski: $29,013,420 Ronald Rainero: $9,321,369 Glenn DeMott: $7,431,505 Dana Spencer: $2,743,637 Blair Collins: $2,354,582 Whistleblower John Kopchinski brought off-label marketing allegations regarding Bextra, and his case represents $1.8 billion of the total. Mr. Kopchinski was represented by Washington Attorney Erika Kelton of the law firm of Phillips and Cohen, and his relator's share under the federal FCA is $51.5 million. Whistleblower Dr. Stefan Kruszewsi brought allegations regarding the off-label marketing of Geodon.  Dr. Kruszewski was represented by Pennsylvania attorneys Brian Kenney and Tavy Deming of the law firm of Kenney, Egan McCafferty & Young and W. Scott Simmer and Thomas J. Poulin of Blank Rome. Whistleblower Glenn DeMott brought off-label allegations regarding Geodon, Lyrica, Relpax, Celebrex, Bextra, and Depo-provera.  Mr. DeMott was represented by Grant & Eisenhofer attorneys Reuben Guttman, John Kairis, and Traci Buschner, as well as Ann Lugbill, Michael Anderson and  Mark Hanna of Murphy Anderson. Whistleblower Blair Collins brought kickback allegations regarding Lipitor, Norvasc, Viagra, Zithromax, and Zyrtec to the U.S. Government's attention. Mr. Collins was represented by Boston attorneys Suzanne E. Durrell, Robert M. Thomas, Jr. and Rory Delaney. Whistleblower Ronald Rainero, represented by Philadelphia attorneys Stephen A. Sheller, James J. Pepper, and Brian J. McCormick of Sheller P.C., brought off-label allegations regarding Zyvox.     Pfizer is not yet out of the woods as far as the False Claims Act is concerned.  Earlier this year, the U.S. Government joined a case against Wyeth involving kickbacks and pricing violations in the sale of Protonix, an acid reflux drug.  Pfizer acquired Wyeth in August, and now owns that potential liability. " |  Sept 2, 2009 NY State and NY City Pay Record Medicaid Settlement New York State and City have agreed to pay $540 million to settle a false claims case in which the state and city were accused of improperly billing Medicaid for student speech, physical and occupational therapy, psychological counseling and transportation costs. This is the largest Medicaid False Claims Act case in history.  >> To read more (PDF) | July 21, 2009 President Signs False Claims Act Amendments Into Law President Barack Obama has signed into law the Fraud Enforcement and Recovery Act (FERA), strengthening the ability of the Federal Government to go after fraudulent contractors. >> To read more | May 20, 2009 WellCare to Pay $80 Million WellCare Health Plans has agreed to pay $80 million to settle charges the company inflated Medicaid charges in Florida.  The settlement only applies only to Florida, and does not settle any other state or federal investigations of WellCare. >> To read more | May 5, 2009 Shipping Firm to Pay $26 Million APL Ltd, a shipping firm in Oakland, California, has agreed to pay $26 million to settle a False Claims Act case in which the company was charged with knowingly overcharging and double-billing the Department of Defense in order to to transport thousands of containers from ports to inland delivery destinations in Iraq and Afghanistan. >> To read more | May 5, 2009 Forest Reserves $170 Million Forest Laboratories has set aside $170 million to settle a False Claims Act case related to the kickbacks paid to doctors for off-label prescription of the antidepressants Celexa and Lexapro to children as well as the off-label marketing of Levothroid. Forest notes that "there can be no assurance that the amount reserved by the Company will be sufficient and that a larger material amount will not be required." >> To read more | May 5, 2009 Maxxam Pays for Forest Fraud Maxxam Inc., and its Chairman, Charles Hurwitz, have agreed to pay $4 million to settle a False Claims Act case in which the company is alleged to have lied and manipulated a sustainable yield plan in order to get the Federal Government to pay more than it should have to acquire Pacific Lumber redwood forest assets as part of the Headwaters Forest preservation plan. >> To read more | May 5, 2009 DoJ Joins HSUS Bad Meat Lawsuit The U.S. Department of Justice has joined a False Claims Act lawsuit filed by the U.S. Humane Society against a Southern California slaughterhouse whose workers were videotaped pushing "downer" cows down a chute to be processed for meat. Westland-Hallmark Meat Co. was, at one time, the second largest supplier of hamburger meat to the National School Lunch Program, and fraudulently certified that no meat from  "downer" cows entered the food supply. >> To read more | May 5, 2009 KBR is Named in Majority of Iraq Frauds April Stephenson, head of the Pentagon’s contract audit agency, says Kellog Brown and Root (KBR) is named in the “vast majority” of 32 cases referred by government auditors for criminal investigation.  She told the Wartime Contracting Commission that in the agency’s history, “I don’t think we are aware of a program, a contract or a contractor that’s had this number” of referrals.  >> To read more | May 5, 2009   Quest Diagnostics to Pay $302 Million Quest Diagnostics has agreed to pay $302 million to settle civil and criminal charges related to a Quest subsidiary which sold a parathyroid hormone immunoassay test which reported elevated results.  The inaccurate diagnostic test kit resulted in medical providers submitting false claims for reimbursement to federal health programs.  The settlement  includes $262 million paid under the federal False Claims Act, $6.2 million paid to the states, and a criminal fine of $40 million.  Thomas Cantor, founder, president and owner of Scantibodies Laboratory Inc., filed the whistleblower lawsuit, and will receive approximately $45 million for his work, and the work of his attorneys, in bringing the case. >> To read more | April 14, 2009 NetApp to Pay $128 Million Network Appliance Inc. has agreed to pay $128 million to settle a False Claims Act case involving  best price violations.  This settlement is the largest corporate fraud settlement in Government Services Administration (GSA) history. The case was filed by Igor Kapuscinski, who will receive $19.2 million for his work, and the work of his attorneys, in bringing the case. >> To read more  | April 14, 2009 Custer Battles Must Pay The Fourth Circuit has reversed a district court judge who set aside a $10 million jury verdict against Iraq war contractor Custer Battles on the basis that fraud against the Coalition Provision Authority and Iraq were not covered under the FCA, even if U.S. personnel were making all payment decisions.  The Fourth Circuit disagreed, effectively ending the notion that Iraq is a "free fraud zones." >> To read more | April 14, 2009   Northrop to Pay $325 Million in Satellite Case Northrop Grumman has agreed to pay $325 million to settle a False Claims Act lawsuit that alleged TRW (now owned by Northrop) made defective parts for spy satellites that resulted in serious malfunctions and expensive fixes, all charged to U.S. taxpayers. The Northrop settlement is the largest military-procurement fraud whistleblower case to date, and was brought by Robert Ferro, an Aerospace Corp. official who first discovered the problem in 1995 and brought it to TRW's attention. The problem went uncorrected and satellites failed.  When TRW engaged in a cover up, Mr. Ferro decided to blow the whistle, and he will be awarded $48.7 million for his work, and the work of his attorneys, in bringing the case.  >> To read more | April 10, 2009 TAF Testifies in Support of FCA Amendments TAF President Jeb White testified before the House Judiciary Committee in support of H.R. 1788, the False Claims Act Corrections Act of 2009, noting that the bill would "significantly enhance the Government’s ability to identify, prosecute and deter fraud on U.S. Government programs" by closing and correcting a number of loopholes that fraud-feasors have used and abused to drain billions of dollars from the U.S. Treasury.  The FCA Corrections Act would also modernize the law to address new types of fraudulent schemes, and clarify procedural questions, while strengthening the Government’s Civil Investigative Demand authority. >> To read the testimony (PDF) | April 2, 2009 California Sues Seven Labs  California is suing seven private medical labs, alleging they cost the state hundreds of millions of dollars by overcharging Medi-Cal by as much as 400 percent.  The whistleblower in this case is Chris Riedel, CEO of Hunter Laboratories, who refused to join in the price-gouging practices.  The seven defendants are: Quest Diagnostics; Health Line Clinical Labs; Westcliff Medical Labs; Physicians Immunodiagnostic Laboratory; Whitefield Medical Laboratory; Seacliff Diagnostics Medical Group, and; Laboratory Corporation of America. >> To read the complaint (PDF) | April 2, 2009 Risperdal Marketed Off-label Three former salespeople have filed suit against Pharmaceutica alleging the company engaged in off-label marketing of antipsychotic drug Risperdal.  According to the lawsuit, company salespeople were encouraged to push the drug to doctors as a treatment for bipolar disorder and depression. Risperdal generated $3.4 billion in sales in 2008.  >> To read more | March 17, 2009 FCA Recoveries Over $25 Billion Total False Claims Act recoveries (Federal and State) since the 1986 amendments now total over $25 billion. To put this into perspective, the $25 billion recovered from fraud-feasors to date represents a stack of $100 bills more than 25 miles high.  In the health care arena, the U.S. Government is recovering $15 back for every $1 invested in False Claims Act health care investigations and prosecutions. | Oct. 1, 2009   Massive Amgen Fraud Case An unidentified whistleblower has filed a False Claims Act case against Amgen, the biotechnology company which makes arthritis and psoriasis drug Enbrel, and anti-anemia drug Aranesp. Amerisource-Bergen and online health-information provider WebMD Health Corp are also named.  The case came out from under seal at a judge's directive, and DoJ is still deciding if it will join. The case involves off-label marketing, kickbacks and Medicaid best price violations.  >> To read more | March 10, 2009 US Joins Against NM Hospitals DoJ has joined a False Claims Act case against Community Health Systems Inc., and three of its hospitals in New Mexico. CHS is charged with violating the FCA by knowingly causing to be presented false claims for federal matching Medicaid funds.  CHS paid New Mexico counties knowing that the money would then be used to illegally obtain triple that amount in federal funding, which would then be paid back to CHS under New Mexico's Medicaid program.  >> To read more   | March 10, 2009 DoJ Joins Against Forest DoJ has charged Forest Laboratories with defrauding the government by illegally marketing the antidepressants Celexa and Lexapro for unapproved use in children and teenagers. Prosecutors charge former top executives at Forest with concealing a clinical study that showed that Celexa and Lexapro were not effective in children and might even pose risks, including causing some to become suicidal.  >> To read more   | March 10, 2009 Pharma Lawyers Now Driving Billion Dollar Settlements Would $1,000-an-hour lawyers for big pharmaceutical companies continue to litigate if they were paid only if they won?  That's a question pharmacy company executives might want to start asking in the wake of the fifth straight loss in an Average Wholesale Price case at the state level.  Here's how the cases line up by state, company, and jury verdict, with the last number a "national number" when the state verdict is weighted by population: 4Alabama - AstraZeneca - $215 million - $14.06 billion 4Alabama - GlaxoSmithKline - $81 million - $5.29 billion 4Alabama - Novartis  -- $33 million - $2.15 billion 4Missouri - Schering-Plough - $107 million -  $5.55 billion 4Wisconsin - Pfizer - $153 million  - $8.7 billion The Wisconsin verdict is the latest blow to the pharmaceutical industry, but it will not be the last as Sandoz is about to go to trial in Alabama and dozens of other companies are lined up behind that. | Feb. 24, 2009 Shipping Firm to Pay $26 Million APL Ltd, an Oakland, California shipping company has agreed to pay the U.S. Government $26.3 million to settle a False Claims Act case charging it with fraudulently inflating bills for shipping cargo to the U.S. military in Iraq and Afghanistan. >> To read more | Feb. 24, 2009 DoJ Joins FCA Suit Against Scios and Johnson & Johnson The U.S. Justice Department has joined two whistleblower lawsuits alleging that Johnson & Johnson and Scios engaged in off-label marketing of the cardiac drug Natrecor.  >>To read more | Feb. 24, 2009 IRS Whistleblower Case Settled for $780 Million UBS AG, Switzerland’s largest bank, will pay $780 million to settle charges it helped thousands of wealthy Americans evade taxes. UBS settled after Heinrich Kieber, a former employee of a Liechtenstein bank, brought documents to the IRS detailing massive tax cheating by U.S. citizens. >> To read more | Feb. 24, 2009 Katrina Case Reinstated The U.S. Fifth Circuit Court of Appeals has reinstated a New Orleans whistleblower lawsuit against insurers that allegedly overbilled the National Flood Insurance Program after Hurricane Katrina.  The lawsuit, by Branch Consultants, was dismissed in October of 2007 on the grounds that its core allegations were already covered by a rival whistleblower suit in Mississippi.  >> To read more | Feb. 24, 2009 AT&T Pays $8.2 Million AT&T has agreed to pay over $8.2 million to settle charges it violated the False Claims Act in connection with the Federal Communication Commission's E-Rate program which is designed to bring the Internet to poor or under-served schools. >> To read more | Feb. 24, 2009 Glaxo's $400 Million Reserve GlaxoSmithKline has reserved $400 million to settle off-label and kick back charges related to "several products” sold from 1997 to 2004, including the antidepressant Wellbutrin. Glaxo said the reserve “reflects the current status of the [DoJ] investigation." >> To read more | Feb. 10, 2009 Lilly Pays Record $1.4 Billion for Zyprexa Fraud In the largest single settlement with a False Claims Act component, Eli Lilly has agreed to pay $1.4 billion to settle charges it defrauded Medicare and Medicaid by off-label marketing of  Zyprexa.  The drug was promoted to nursing homes to treat dementia, which it does not do.  Of the $1.4 billion settlement, $800 million was paid under the FCA, and $615 million was a criminal penalty (a $515 million fine and asset forfeiture of $100 million). | Jan. 10, 2009 >> Press Release | Information | Guilty Plea Agreement | Government's Memorandum For Entry Of Plea and Sentencing Updated Advising the Qui Tam Whistleblower The second edition of the bestselling Advising the Qui Tam Whistleblower by Robin Page West is now available from the American Bar Association, with a portion of the proceeds to come back to TAF.  This publication provides complete and concise information to assist an attorney in evaluating a client's potential claim, and to determine whether pursuit of a qui tam action is warranted. The handy guide provides an overview of the statute, highlights common and controversial topics, and contains updated statistics as well as a discussion of the recent Supreme Court Allison Engine case, as well as updated case law on the defenses of: Government knowledge/lack of intent Constitutionality Lack of Rule 9(b) specificity Lack of presentment Public disclosure/not original source Limitations Lack of falsity Materiality Counterclaims Improper relator: pro se, government employee or deceased Relator-released claims Advising the Qui Tam Whistleblower: From Identifying a Case to Filing Under the False Claims Act, also present information on: Submitting false cost and pricing data Providing an inferior product Falsely certified medical procedures Tax law Parasitic suits Use this volume as a starting point for further thinking. Nine companion forms are included.  >> To order   FY 2009 FCA Statistics The U.S. Department of Justice reports they secured $1.34 billion in settlements and judgments in the fiscal year ending Sept. 30, 2008, but the actual number is actually much higher than that.  Why the lower number?  Simple:  for statistical purposes, the DoJ does not count the money won in settlements that is subsequently handed over to the states, nor does it count criminal penalties.  These can quickly add up.  For example, in the DoJ's recent release, they count the Merck FCA recovery at $361.5 million even though the DoJ's own press release says the total was $650 million. In the Cephalon case, DoJ reports a $375 million recovery even though the DoJ's own press release says the total was $425 million.  In the Staten Island University Hospital case, DoJ reports $74 million while the press reports the full figure of over $88 million which includes the recovery to the state. The DoJ's most recent press release list the CVS False Claims Act case as a $21 million recovery, even though their earlier press release put the figure at $37 million. So how much money did the False Claims Act actually return last year according to our records?  A little over $2 billion. | Nov. 12, 2008 Vytorin in 35-state Off-Label Investigation DoJ and 35 state Attorney Generals offices are investigating whether Merck and Schering-Plough improperly promoted the cholesterol drug Vytorin.  Merck says it has received five “civil investigative demands” from a multistate group so far.  >> To read more | Nov. 12, 2008   Ranbaxy Under Investigation Ranbaxy, one of the largest drug companies in the world, is under investigation for making weak or adulterated HIV drugs given to thousands of AIDS patients in Africa and billed to the U.S. Government under the President's Emergency Plan for AIDS Relief program (PEPFAR).  Ranbaxy is also being investigated for lying about its Zocor formulation sold in the U.S. >> To read more |July 16, 2008 TX Joins Lawsuit Against Four Drug Companies Texas has recently joined lawsuits against four generic drug manufacturers that falsely reported inflated drug prices to the Texas Medicaid program.  The drug companies are Watson/Schein Pharmaceuticals Inc. of California; Alpharma Inc. of New Jersey; Par Pharmaceutical Inc. of New Jersey; and Barr Pharmaceuticals Inc. of New York.  The Texas False Claims Act legal action was initiated by Ven-a-Care of the Florida Keys Inc. which has previously initiated Medicare and Medicaid fraud actions that have returned over $850 million to the American people.   >> To read more |July 16, 2008 Join Taxpayers Against Fraud Taxpayers Against Fraud Education Fund is a 400-member strong organization of False Claims Act plaintiffs lawyers.  If you are a qui tam lawyer, and are not a member of TAF, you are missing out on the latest legal opinions, settlements, and practitioner strategies.  >> Join today  Faulty Flares Ignite Lawsuit The Dept. of Justice has joined a whistleblower lawsuit alleging that ATK Thiokol Inc. made defective battlefield flares that can ignite if dropped from a height of as low as 3 feet. The defective flares cost from $700 to $1,000 each, and the U.S. Army and Air Force paid ATK more than $100 million for the product. >> To read more | June 26, 2007 Drug Companies May Have To Return More of America's Stolen Billions The U.S. Department of Justice has joined a False Claims Act case filed by Ven-a-Care of the Florida Keys against Roxane Laboratories Inc. and Boehringer Ingelheim Pharmaceuticals for Medicaid and Medicare drug pricing violations.  This federal action comes more than a year after Roxane and Boehringer paid $10 million to settle a Texas False Claims Act case alleging similar misconduct involving misrepresentations about the "Average Wholesale Price" of prescription drugs sold to Medicaid.  In announcing their intervention in the case, the U.S. Department of Justice noted that "The United States alleges that Medicare and Medicaid have reimbursed Roxane's customers in excess of $500 million for the drugs which are the subject of the complaint."      The Roxane Labs case joins a similar case against Abbott Laboratories by Ven-a-Care that the U.S. Department of Justice joined in May of 2006, and another against Dey Pharmaceuticals that the DoJ joined in September of 2006.      Complaints against more than 40 additional companies engaged in Average Wholesale Price violations have been filed in Federal and State courts.  Along with Abbott, Roxane, Dey and Boehringer Ingelheim, defendants in intervened cases include (but are not limited to):  Amgen, Armour Pharmaceutical; Aventis Pharmaceuticals, Baxter Healthcare, Bedford Laboratories; Ben Venue Laboratories, Braun of America, C.H. Boehringer Sohn, Centocorps Inc., Forest Pharmaceuticals, Grundstucksverwaltung GMBH & Co., EMD, Geneva Pharmaceuticals, GlaxoSmithKline, Glaxo Wellcome, Burroughs Wellcome, Hoechst Marion Roussell, Hoffman-LaRoche, Hospira Inc., Immunex, Ivax Pharmaceuticals, Janssen Pharmaceutical Products, Johnson & Johnson, Lipha, McGaw, Merck, Mylan Laboratories, Mylan Pharmaceuticals, Novartis, Ortho Biotech Products, Pfizer, Pharmacia, Pharma Investment, PurePac Pharmaceutical, Roche Laboratories, Roxane Laboratories, Sandoz, Sicor, Gensia Pharmaceuticals, Schering-Plough Corp., SmithKline Beecham Corp., GlaxoSmithKline, Teva Pharmaceuticals, Warrick Pharmaceuticals, Z.L.B. Behring.     While "the rock" of the U.S. Department of Justice squeezes pharmaceutical companies from one side, a potential "hard spot" can be found in the courtroom of U.S. District Judge Patti Saris who ruled in November that "Average Wholesale Price" means exactly what the dictionary says it does, and is not a "term of art" that the drug companies can unilaterally define.  Judge Saris' November ruling suggests that the pharmaceutical industry may face real difficulties in her courtroom.       Back in November, we predicted that more Average Wholesale Price cases would come to resolution in 2007, in part to avoid the high cost of courtroom failure (mandatory triple damages, plus mandatory statutory fines and exclusion).  In late December, Bristol-Myers Squibb was the first company to work out a settlement of both its AWP cases and an off-label marketing case for a combined total of $499 million.  More cases are sure to follow.  Stay tuned.   Fighting Healthcare Fraud: Whistleblower Statute Returns $15 for Every $1 Invested A TAF report by economist Jack Meyer, concludes that every dollar invested by the U.S. Government in investigation and prosecution of federal health care fraud returns $15 back to the American people -- a phenomenal rate of direct return that does not factor in the benefits of fraud deterrence.  >> To read more | August 2, 2006 One Click Statistics Sheet A simple one-click presentation (6 PDF pages) of official Department of Justice False Claims Act Statistics for FY 1987-2008 can be found >> here (note that this table does not include recoveries to the states in Medicaid cases, nor does it include criminal fines collected as an outgrowth of FCA cases). Pharma Lies for Pharma Profits How lucrative are the lies told by prescription drug manufacturers?  Very!  The table below, assembled from the recent State of Florida's False Claims Act complaint against Mylan, Teva, and Watson pharmaceuticals, shows how drug companies capture market share at the expense of U.S. taxpayers.  >> To learn more about "marketing the spread" frauds.   Drug and Company Reported Wholesale Acquisition Cost (WAC) Florida Medicaid cost based on WAC Actual  pharmacy cost of buying drugs Difference in $ Spread as percent of actual Rantidine, 150mg tablet (Mylan) $14.00 $14.98 $2.88 $12.10 420% Clonazepam, .5mg tablet per 100 (Teva) $9.31 $9.96 $4.49 $5.47 122% Carisoprodol,350mg tablet (Watson) $363.40 $388.84 $113.10 $275.74 244%           A Tally of FCA Fraud Cases by Pharmaceutical Manufacturers (Note: Total may include criminal fines and state claims associated with FCA actions)   Company Settlement Date Product Total Recovery Fraud Type Whistleblower Abbott 9/17/08   $28 Million under TX FCA Marketing the spread and concealment of best price Independent pharmacy AstraZeneca 6/20/03 Zoladex $355 million Marketing the spread and concealment of best price Sales exec from competitor at TAP Pharmaceuticals Aventis 9/10/07 Anzemet $190 Million Marketing the spread Independent pharmacy Baxter International 6/13/06 Generic drugs made by Baxter $8.5 million Marketing the spread Independent pharmacy Bayer l 1/23/01 Kogenate, Koate-HP, Gamimmune $14 million Marketing the spread and concealment of best price Independent pharmacy Bayer II 4/15/03 Adelat CC, Cipro $257 million Concealment of best price Bayer marketing executive Bristol-Myers Squibb 12/15/06 Abilify and other drugs $499 million Marketing the spread on a variety of drugs and off-label marketing of the schizophrenia and bipolar disorder drug Abilify. Independent pharmacy and other relators Cephalon 11/14/2007 Actiq (fentanly citrate $425 million Off-label marketing of narcotic lollipop  Four former Cephalon sales representative s Dey I 6/11/03 Albuterol $18.5 million Marketing the spread Independent pharmacy Dey 2 (Connecticut FCA) 8/7/04 Albuterol $2.5 million Marketing the spread Independent pharmacy GlaxoSmithKline I 4/16/03 Paxil, Flonase $88 million Concealment of best price Derived from Bayer marketing executive allegations. GlaxoSmithKline II 9/17/05 Zofran, Kytril $150 million Marketing the spread Independent pharmacy InterMune 10/26/06 Actimmune $36.8 million Off-label marketing   King Pharmaceutical 10/30/05 Altace, Aplisol, Lorabid, and Fluogen $124 million Concealment of best price Executive of King Pharmaceuticals Eli Lilly 1/22/09 Zyprexa $1.42 billion ($438 million under Federal FCA, $361 million to state, and $515 million to the states) Off-label marketing Several former  company employees Merck 2/7/08 Vioxx, Pepcid, Zocor $650 million Nominal pricing fraud (kickback) A doctor and a former Merck district manager Otsuka Pharmaceutical 3/27/08 Abilify $4 million Off-label marketing   Pfizer l 10/28/02 Lipitor $49 million Concealment of best price National account manager for Pfizer subsidiary Pfizer ll 5/13/04 Neurontin $430 million Off-label marketing Medical liaison to physicians for Pfizer subsidiary Purdue Pharma 5/15/07 Oxycotin $634 million Off-label marketing No relator Roxane Labs,  Boehringer Ingelheim Pharmaceuticals, and Ben Venue Laboratories (Texas FCA) 11/25/05 Albuterol $10 million Marketing the spread Independent pharmacy Schering-Plough  l 5/3/04 Albuterol $27 million Marketing the spread Independent pharmacy Schering-Plough ll 7/29/04 Claritin $345 million Concealment of best price Three employees of Schering-Plough subsidiary Schering-Plough lll 8/26/06 Temodar, Intron-A, K-Dur, Claritin RediTabs $435 million Concealment of best price, Marketing the spread Three employees of Schering-Plough Serono   10/17/05 Serostim $704 million Off-label marketing and kickbacks Five Serono employees in two states. TAP Pharmaceuticals 10/3/01 Lupron $875 million Marketing the spread and concealment of best price HMO Physician and TAP sales executive TOTAL     $7.79 Billion (and growing!

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