False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
April 3, 2007
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Do You Have a Case?
If you think you might have a False Claims Act case, take our quick quiz to see if you have the basic elements of a case. If you pass the quiz, fill out our intake form for referral to a lawyer with experience in False Claims Act litigation.
New York Passes State FCA
A budget has been passed in New York which includes a state False Claims Act. As a Buffalo News editorial noted, "[T]he Senate has agreed to the creation of a False Claims Act meant to target fraud and abuse within the system, estimated to account for nearly $20 billion every year. Pursued aggressively and efficiently, that could pay huge dividends for decades to come. Indeed, the need is so great, it’s startling that the Senate, in control of the purportedly conservative Republican Party, needed to be persuaded." >> To read more
Maxwell Case Overturned
A federal judge in Denver has overturned a jury verdict which found Kerr-McGee Corp. liable for $7.6 million in underpaid oil royalties. U.S. District Judge Phillip Figa reversed the jury decision, saying that because another government auditor had mentioned the fraud in an email to a state investigator in Louisiana, that the case had previously been disclosed. >> To read more
Pharmacia to Pay $35 Million
Pfizer has agreed to pay $34.7 million to settle criminal charges that its Pharmacia subsidiary paid kickbacks and engaged in off-label marketing of Genotropin, a type of human growth hormone. Under terms of the settlement, a Pfizer subsidiary will be barred from participating in government healthcare programs. An FCA lawsuit filed by former Pharmacia executive Peter Rost remains outstanding. >> To read more
Joyce Branda to Head DoJ's
Commercial Litigation Branch
Joyce R. Branda has been appointed Director of the Commercial Litigation Branch of the U.S. Department of Justice, succeeding Michael F. Hertz who has been promoted to Deputy Assistant Attorney General.
Caremark Loses Another One
A federal appeals court has ruled that Caremark illegally denied prescription drug claims in order to shift those costs to Medicaid. A False Claims Act case on this issue has been joined by the U.S. Government and by the states of Tennessee, Texas, Florida, and Arkansas. Tennessee alone is seeking $61 million in reimbursement. >> To read more
TX Hosp. to Pay $15.5 Million
The Harris County Hospital District (HCHD) has agreed to pay $15.5 million to settle Federal and state charges that it improperly filed Medicare and Medicaid claims from 2000-2005. The case was brought by Robert McCaslin, an account rep. in the Patient Business Services Division of HCHD. >> To read more
Cabrini to Pay $3.4 Million
Cabrini Medical Center in Gramercy Park, New York, has agreed to pay $3.4 million to settle a False Claims Act lawsuit which charged the company with paying kickbacks to Applied Consulting in exchange for patient referrals. >> To read more