False Claims Act Update & Alert

 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
December  21, 2006

   

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Bristol-Myers Squibb to Pay $499 Million for Pricing and Marketing
Bristol-Myers Squibb has entered into an "agreement in principle" with the U.S. Department of Justice for $499 million to settle federal investigations into
drug pricing and marketing practices surrounding its products.  The company did not  announce the name of the drugs in question, but the settlement on civil and criminal charges is believed to cover a False Claims Act case.  >> To read more

IRS Whistleblower Act Signed
President Bush has signed into law an IRS whistleblower act which would reward whistleblowers with 15% to 30% of the amount collected.  "It's a shame that an agency that could really benefit from whistle-blowers hasn't encouraged them, but I hope that will change with the new law," said Sen. Charles Grassley (R-IA) sponsor of the law.  >> To read more

FL Hospital to Pay $14.25 Million
Jackson Memorial Health System, which owns the 1,776-bed Jackson Memorial Hospital in Miami, has agreed to pay $14.25 million to settle Medicare cost reporting fraud allegations.  The settlement is connected to a raft of ongoing investigations associated with more than 20 hospitals that has already pulled in about $50 million in settlements.  >> To read more

Chandler Settles for $5 Million
A lawsuit brought in 1997 by former Cook County, Illinois project director Janet Chandler has been settled for $5 million.  The case went to the Supreme Court in 2003 over whether individuals could sue local governments under the False Claims Act. The court ruled unanimously that they could.  TAF filed an amicus brief in support of Chandler. >> To read more

Mucho Problemo at Lilly
The New York Times reports that Eli Lilly created a marketing program called "Viva Zyprexa," in which the company aggressively off-label marketed Zyprexa to elderly patients suffering from dementia.  Zyprexa, which had $4.2 billion in sales in 2005, is meant only for schizophrenia and bipolar disorders.  >> To read more

Fox in the Chicken House?  
The Department of Interior has
appointed David Deal head of a new advisory panel to review complaints about the Mineral Management Service's corruption and mismanagement which has resulted in billions of dollars being lost or stolen from the U.S. Treasury.  From 1975 to 2003, Mr. Deal served as an attorney for the American Petroleum Institute.  Mr. Deal's appointment gives the appearance of a conflict,  which will surely make Mr. Deal's job more difficult.  >> To read more