False Claims Act Update & Alert

 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
October 31, 2006

   

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In the first month of Fiscal Year 2007, Taxpayers Against Fraud has recorded more than $500 million in False Claims Act settlements and judgments.

   
Amerigroup to Pay $144 Million
Amerigroup was found liable, in a trial by jury, in the largest qui tam False Claims Act judgment ever levied -- $144 million with an additional $190 million in statutory fines possible. Amerigroup was accused of discriminating against pregnant women and other potentially high-risk patients who were supposed to be recruited into a state-sponsored Medicaid HMO. >> To read more

InterMune to Pay $40 Million
InterMune Inc. has agreed to pay $36.9 million to settle charges the company illegally promoted Actimmune to treat lung scarring despite the fact that the drug was not FDA-approved for that use.  A criminal prosecution has been deferred for two years, contingent on the company cooperating with the investigation and implementing changes to its compliance policies. >> To read more

U. of Phoenix Loses ... Again
The 9th Circuit Court of Appeals has denied a petition for rehearing of a University of Phoenix False Claims Act case, clearing the way for the case to move forward to trial.  The University of Phoenix is being sued for illegal incentive payments to student recruiters.   Last year the University of Phoenix received $1.7 billion in taxpayer-funded federal education funds. >> To read more

Keystone to Pay $5 Million
Keystone Mercy Health Plan has agreed to pay $5 million to resolve a False Claims Act case involving Medicaid overpayments not returned to
the Pennsylvania Department of Public Welfare.  Lorraine Pittelli, a  claims adjuster for Keystone Mercy who helped the government recover the money, will receive $780,000 from the proceeds of the settlement.  >> To read more

Fast Fact
The Medco Health Solutions Inc. case that was settled last week for $155 million, took 7 years, 6 judges, 120 depositions, and 460 docket entries.  More than 9 million pages were exchanged between the parties.