False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG May 8, 2007
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			$9.8 Million Off-Label Case Medicis Pharmaceutical Corp. has agreed to pay $9.8 million to settle an off-label marketing case involving Loprox, a topical fungicide marketed as a diaper rash cure.  Loprox is not FDA-approved for patients under 10 years of age.  >> To read more
			Is Uncle Sam Out of Luck? After a jury ruled in favor of relator Bobby Maxwell in a $30 million FCA oil lease case, the judge decided the court did not have subject matter jurisdiction because the case was "publicly disclosed." Anxious to recover America's stolen money, DoJ asked the judge to stay entering a judgment so they could join the case, but the judge declined, once again citing subject matter jurisdiction.  >> To read
			U.S. Oncology Under the Gun U.S. Oncology reports two seeming unrelated bits in their latest SEC Form 10-K.  One note say cancer patients are suddenly using a lot less anemia drugs, and as a result U.S. Oncology will bank $8-10 million a year less than expected.  The second note says that in 2005 the company was subpoenaed by the U.S. Department of Justice about contracts and relationships with pharmaceutical companies.  Coincidence? >> To read more
			Lilly Faces Big Penalties Eli Lilly faces a rising mountain of liability over off-label marketing of anti-psychotic medication Zyprexa which has reportedly been promoted for use by patients suffering from dementia, depression and autism. Zyprexa, had $4.2 billion in sales in 2005, and is only FDA-approved for schizophrenia and bipolar disorders.  Along with the U.S. Department of Justice, numerous states have also filed suit or launched investigations, including FL, TX, CA, IL, MT, LA, WV, AK, NM, OR, VT, and MS.  >> To read more
			Health Care Organized Crime The Tenet Shareholders Committee wants to know why the U.S. Government is such a slow learner and quick forgetter.  Among the points made in an April 24th backgrounder:  4 In the past 13 years there have been 13 separate settlements between Tenet and the federal government on charges of fraud, false claims and over-billing Medicare; 4 Tenet has paid approximately $2.6 billion to settle government and major patient lawsuits, including allegations of unnecessary patient deaths; 4 In a July 2006 settlement, the U.S. Government agreed to let Tenet pay only fractional damages.  The Department of Justice explained that "the settlement amount was based on the company's ability to pay," ignoring the fact that Tenet continues to pay its Board members 2.5 times more than the median compensation for Board members at the 200 largest U.S. companies.  >> To read more