|
            
 
 
         
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 |
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
September 24, 2008
n
And the Winners Are
n
NJ Hospital to Pay $3.8 Million
n
After 14 Years Pogue Goes to Trial
n
Abbott Settles with Pennsylvania
n
Roxanne Settles With Massachusetts
n
Connecticut Physical Therapy Network to Pay $1.8
Million
September
17, 2008
n
NY Hospital to pay $88 Million
n
Abbott Pays $28 Million to TX
n
Healthfirst to Pay NY
$35 Million
n
Maxwell Case Reversed
n
IRS Told of Bond Fraud
n
US Files Suit Against
Boeing
n
Counties Can Sue Over
Drug Pricing
n
Trade Group Burn Notice
August
27, 2008
n
Citibank: "Theft Is Our Business Plan"
n
Stryker Whines About
"Harassment"
n
Wellcare Pays $35.2 Million
n
Best Case Title of the Week
n
CMS Lied About Paring Fraud
u
The Complete Newsletter Index
|
|
|
|
|
|
 |
 |
 |
 |
|
|
 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
|
 Pfizer
Settles Largest
False Claims Act 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, 2008
|
 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
2008 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 |
 Cephalon
Pays $425 Million
Cephalon, a biotech company, has settled a massive off-label
marketing case for $425 million. The case involved off-label
marketing of Actiq (a narcotic lollipop designed for pain
control in cancer patients), Gabitril (an epilepsy
medication) and Provigil (a narcolepsy medication). Of the
$425 million settlement, $50 million is a criminal fine and
$375 million is to be paid as part of a civil settlement of
Medicare and Medicaid claims under the False Claims Act. The
massive fraud was first brought to the government's
attention by four whistleblowers, all of whom will share in
the proceeds of the recovery.
As part of Cephalon's Corporate Integrity Agreement, the company
will have to post on its website a searchable database of all
physicians who acted as speakers or consulted for the company
during 2009. Beginning the first quarter of 2011, Cephalon will
have to name doctors who receive any payments from the company
during the previous calendar year and say (roughly) how much
they received.
4
Three press releases
:
1
,
2
,
3
4
Settlement agreement
(PDF)
4
Corporate
integrity agreement
4
Plea agreement &
sentencing
|
October 1, 2008 |
|
 NY
Hospital to pay $88 Million
Staten Island University
Hospital (SIUH) has agreed to pay the United States and the
state of New York over $88.9 million to settle claims the
hospital defrauded Medicare, Medicaid and the military’s health
insurance program. This is the
third time SIUH has been nailed
for fraud.
Previous cases were settled for
$45 million (1999) and $76.5 million (2005). >>
To read more
|
September 17, 2008 |
 Abbott
Pays $28 Million to TX
Abbott Laboratories has agreed
to pay $28 million to settle Medicaid-fraud charges under the
Texas False Claims
Act. Abbott misreported drug prices to Medicaid, causing the
state to significantly overpay for prescription drugs. The
Texas case was brought by Ven-a-Care
of the Florida Keys, which has previously won FCA cases against
Schering-Plough/Warrick Pharmaceuticals, Dey, Boehringer
Ingelheim/Roxane Laboratories, Baxter Healthcare Corp., and
Fresenius. The U.S. Department of Justice has joined a similar
case, also against Abbott, brought by Ven-a-Care.
>>
Texas settlement with
Abbott
|
September 17, 2008 |
 Taxpayers Against Fraud
2008 Award Winners
4Lifetime
Achievement: James Helmer
4Lawyer
of the Year: Steve Cohen, Mark Kleiman, and BethAnne Yeager
4Whistleblower
of the Year:
Sherry Scharff and Walter T.
“Tom” Decyk
4Honest
Abe Integrity in Government Award to Congressman Dan Lungren
(R-CA)
>>
To read more |
 Healthfirst
to Pay NY $35 Million
Healthfirst, the largest Medicaid Managed Care provider in New
York, will pay $35 million to settle allegations it violated
state and federal contracts by paying bonuses to employees based
on the number of people they enrolled in managed care. >>
To read more
|
September 17, 2008 |
 Maxwell
Case Reversed
The same week the Dept.
of Interior's Inspector General
issued a report noting some
Minerals Management Service employees in Denver were accepting
gifts and having sex with representatives of the oil and gas
industry,
reversed a
lower court decision throwing out a $30 million jury verdict
against Kerr-McGee for knowing underpayment of royalties.
>>
To read decision
|
September 17, 2008 |
 Justice
Probes Bile Stent Fraud
The U.S. Attorney's Office
in Boston is investigating the marketing of bile-duct stent to
determine if companies such as Abbott Laboratories, Boston
Scientific and Johnson & Johnson have been engaged in off-label
marketing of the stents to cardiac surgeons and hospitals. >>
To read more
|Aug. 6, 2008 |
 Amerigroup
Settles for $225 Million
After losing at trial,
Amerigroup insurance has agreed to pay $225 million to the U.S.
and the state of Illinois to settle False Claims Act charges.
The company faced a $334 million judgment --
the largest in the 20-year
history of the FCA. Amerigroup will also pay $9 million in
legal fees and sign a corporate integrity. The FCA case charged
the company with illegally denying Medicaid coverage to pregnant
women in Illinois.
>>
To read more
|July 28, 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! |
|
|
|
|
|
