False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG March 27, 2007
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			Supremes Make It Harder Jim Stone and the U.S. Government won a $4.2 million FCA jury verdict against Rockwell International in 1999.  In 2002, Rockwell appealed and lost.  Rockwell asked for a rehearing and lost for a third time.  Now, almost 20 years after first blowing the whistle, the Supreme Court has decided that whistleblower Jim Stone is not an original source and is not eligible for a relator's share in the case.     Jim Moorman, President of Taxpayers Against Fraud, notes that the effect of the Court's decision will be to "Make an already difficult thing -- blowing the whistle -- even harder."  >> To read more
			Albany Times Union Editorial The Albany Times Union notes that:  "One way to combat cheating on a large scale would be for New York to follow the lead of other states and enact a False Claims Act, which gives citizens an incentive to blow the whistle on fraud.... [G]overnment alone can't solve the problem. It needs the help of citizens... "  >> To read more
			Katrina Flood Insurance Case On Feb. 28, Rep. Gene Taylor (MS) issued a report to the Subcommittee on Oversight and Investigations regarding State Farm Insurance's business practices in Mississippi.  On page 6 of that report it is revealed that two whistleblowers  have filed a qui tam case accusing State Farm of trying to push flood insurance claims on to the U.S. Government.  >> To read more (PDF)
			Zyprexa Kicks Back to States In 20 states, Eli Lilly is paying a consulting company to oversee how doctors prescribe Lilly's antipsychotic drug Zyprexa.  In return, the states must agree to put Zyprexa on the Medicaid preferred drug list in that state, and cannot restrict a doctors' ability to prescribe the drug.  The result:  Zyprexa, which costs $300 a month, is the "single biggest drug cost for state Medicaid budgets," according to The New York Times. >> To read more