False Claims Act Update & Alert

 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
March 2, 2007

   

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Pharma Research Fraud  
In testimony before the House Committee on Energy and Commerce, a former staffer for a contract research organization hired by Sanofi-Aventis said both companies knew fraudulent data was being submitted to the FDA in a postmarketing trial for the antibiotic Ketek.  Liver-damage caused by Ketek is believed to have caused several patient deaths, and the lead researcher in the fake trial is now in federal prison.  It is not known if an FCA lawsuit has been filed. >> To read more

Time to Buy a Law Firm?
A close reading of Abbott Laboratories recent SEC Form 10-K reveals that the company faces a jaw-dropping amount of litigation.  The newest investigation involves Abbott's sales and marketing practices surrounding the drug Micardis, which Abbott co-promoted with Boehringer Ingelheim.  Abbott is also involved in investigations in Wisconsin and Louisiana involving Medicaid rebates and the sales and marketing practices of Kos Pharmaceuticals, which Abbott acquired in December of 2006.  Abbott also faces FCA litigation involving pricing fraud for a variety of drugs in a case joined by DoJ and 11 state Attorneys General.   >> To read more

Maximus Under Investigation
According to its
annual report, Maximus Inc. is currently under investigation in both Washington, D.C. and Illinois.  The D.C. investigation involves
Medicaid reimbursement claims, while the Illinois investigation is related to unspecified work for the Executive Branch of Illinois State Government.

FedEx Faces Tax FCA in Nevada
A Nevada lawsuit against FedEx claims the company intentionally misclassified its employees as independent contractors in order to reduce operating costs, and made false records and statements to avoid paying state payroll taxes. The Nevada False Claims Act, unlike other state FCA's, includes a tax provision.  >> To read more