False Claims Act Update & Alert

 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
May 22, 2007

   

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IRS Qui Tam an Early Winner
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Looking for Fraud In
All the Right Places:

There are a lot of big False Claims Act cases under investigation.  What follows is a quick smattering of major cases we know or suspect due to SEC filings, news articles, or Government reports:

4
Nominal Pricing Fraud: Several FCA cases involving violations of the nominal pricing exception have been filed. Possible subjects of these cases involve statins, proton pump inhibitors, and non-steroidal anti-inflammatory drugs.
4Anti-Psychotic Drugs: Investigations about the off-label marketing of Zyprexa, Risperdal and Seroquel are under way. These three drugs represent combined sales of $12 billion in 2006.
4Average Wholesale Price Fraud: The U.S. Government has joined three cases likely to go to trial this summer: Abbott, Dey and Roxane Pharmaceuticals. More than 50 other companies face similar charges in Boston.
4Orthotics Fraud: Ninety percent of the U.S. orthotics industry is under investigation for kickbacks and billing fraud. DePuy, Zimmer, Biomet, Stryker, and Smith & Nephew have combined annual revenues of more than $15 billion. Settlement talks are reportedly nearing conclusion for all but one company.
4PBM Fraud: Caremark and Express Scripts are under investigation for a variety of frauds. Caremark is believed to be in settlement talks.
4University of Phoenix: The Supreme Court has denied certiorari, and the defendants concede they face a billion dollars in liability.
4Outlier Fraud:  Several large outlier fraud investigations against hospitals are believed to be under investigation.