False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG November 14, 2007
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Off-Label Narcotic Lollipops
Cephalon says it has tentatively settled a False Claims Act case dealing with the off-label marketing of the narcotic lollipop called Actiq. The tab: $425 million. Actiq was FDA-approved for cancer pain, but 80 percent of prescriptions went to non-cancer patients. Despite the recent $425 million settlement, Cephalon's legal problems may not be over: The U.S. Attorney's office in Philadelphia and the Attorney General of Connecticut are reportedly investigating the company's marketing of Fentora, another cancer pain medication. >> To read more
$28 Million Air Cargo Fraud National Air Cargo will pay more than $28 million in fines and forfeitures for over-billing the U.S. Government. Of the $28 million, $7.37 million will be paid to settle False Claims Act violations. Though this settlement only covers air cargo services within the U.S., National Air Cargo provides 75 percent of the commercial air cargo service that the Defense Department uses in Iraq and Afghanistan. >> To read more
DaVita Investigation in Nevada
Nevada’s Attorney General has launched a criminal investigation into DaVita's pharmaceutical billing practices in that state. The investigation apparently has to do with the use of Epogen by renal care patients. >> To read more (subscription)
CMS and the Right to Steal
A GAO investigation reveals that more than 30,000 corporate Medicaid contactors are also tax cheats, and that Medicaid is owed more than $1 billion in back taxes for FY 2006 alone. CMS' response to the report: it would be "inappropriate" to keep tax cheaters out of the Medicaid program. >> To read more