- Abbott Could Face a $1 Billion Whistleblower Fine
- U.S. Seeks Novartis Records for 80,000 Possible Kickback Events
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- Fraud Against the Handicapped
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The Southern District of New York denied a motion to dismiss a False Claims Act case filed against Teva Pharmaceuticals USA, and two of its subsidiaries.
A whistleblower-initiated False Claims Act lawsuit which triggered a federal investigation into the financial transactions of renal care company DaVita Healthcare Partners, has resulted in DaVita paying $400 million to settle civil charges involving massive kickbacks paid to doctors in the form of real estate transactions.
U.S. District Court Judge Paul G. Gardephe gave the green light to a False Claims Act lawsuit alleging the company's cardiovascular division violated Federal and New York stte anti-kickback statutes.
Companies often pay kickbacks to doctors and hospitals. These kickbacks can be disguised any number of ways, but in the end the cost is baked into the price of the drug, device, or service. That tends to result in doctors and hospitals using the more expensive product, not because it is better, but because the company with the highest-priced product is the one that can afford to pay the largest kickback. The whole thing is a self-reinforcing perversion of the marketplace, and one reason kickbacks are illegal.