False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG June 26, 2007
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			Judge Saris Weighs in on AWP U.S. District Judge Patti Saris has ruled that AstraZeneca, Schering-Plough and Bristol-Myers Squibb engaged in "unfair and deceptive trade practices" related to drug pricing.  While the ruling is in a class-action case, the facts closely parallel FCA litigation that is also in Judge Saris's court -- bad news for pharma. >> To read more
			Texas Joins 3 Pharma Cases Texas' Attorney General has joined three False Claims Act case against Sandoz Inc. of New Jersey, Mylan Laboratories, and Teva Pharmaceuticals. All three cases involve "marketing the spread" by misstating the Average Wholesale Price of prescription medications.  >> To read more
			Faulty Flares Ignite Lawsuit The Dept. of Justice has joined a whistleblower lawsuit alleging that ATK Thiokol Inc. made defective battlefield flares that can ignite if dropped from a height of as low as 3 feet. The defective flares cost from $700 to $1,000 each, and the U.S. Army and Air Force paid ATK more than $100 million for the product. >> To read more
			Worthless Health Care The Dept. of Justice has filed suit against a Texas-based company that operated five nursing homes in the St. Louis area, saying that the facilities provided "worthless" health care. Press reports note that doctors had to amputate legs or toes of at least nine residents due to serious bed sores. >>  To read more
			Phoenix Feels the Heat The University of Phoenix is trying a last-ditch effort to avoid going to trial in a massive False Claims Act case in which it is alleged the school routinely violated the Higher Education Act by paying recruiters incentives based on the number of students enrolled.  Phoenix's gambit:  they claim they already settled the FCA claim administratively, never mind the fact that the voluntary settlement expressly said the school was still liable under the FCA. >> To read more
			Hopefully, Beyond Politics The movie, Sicko, opens Friday and the health care industry is already circling the paid-pundit wagons.  PhRMA Senior Vice President Ken Johnson, says "I don't think [the movie is] going to change anybody's party affiliation."  Hopefully, that's true; as far as we know, all the political parties are on record as opposing fraud and price-gouging. >> To read more