False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
February 25, 2008
n TAF Home Page
n Previous Newsletters
n Email editor
Please take a moment to forward this FREE electronic newsletter to others that might be interested!
Allison Engine to Supreme Court
The Supreme Court will hear oral arguments in the Allison Engine case this week. Amicus curiae briefs have been filed by the Solicitor General’s Office, Sen. Charles Grassley and Taxpayers Against Fraud. The amici build off the arguments raised in the Relator-Respondents’ brief and offer the Court a number of policy considerations for rejecting the so-called Totten “presentment requirement.” On the opposite side of the fence, representing the company charged with defrauding America's taxpayers, is this brief which asks the Court to reverse the Sixth Circuit’s decision. To read more about the case
$215 Million Alabama Jury Award Sends Powerful Message on Average Wholesale Price Fraud
AstraZeneca was hit with a $215 million judgment in Alabama over Medicaid drug pricing fraud. The jury saidAstraZeneca must pay$40 million in compensatory damages and$175 million in punitive damages for alleged false and misleading reporting of drug prices reimbursed by the Alabama State Medicaid Agency. Remember, this is just one drug company in one state. If we scale up the compensatory award alone, based on population, AstraZeneca seems to face a potential liability of $2.4 billion for Average Wholesale Price and Medicaid Best Price violations. AlstraZeneca is just one of more than 75 drug companies in line to face similar charges in Alabama. Though the Alabama litigation is not a False Claims Act case, more than 60 companies face similar charges, under the federal False Claims Act, up in Boston. These companies include: Abbott, Roxane, Dey, Boehringer Ingelheim, Amgen, Armour Pharmaceutical; Aventis Pharmaceuticals, Baxter Healthcare, Bedford Laboratories; Ben Venue Laboratories, Braun of America, C.H. Boehringer Sohn, Centocorps Inc., Forest Pharmaceuticals, Grundstucksverwaltung GMBH & Co., EMD, Geneva Pharmaceuticals, GlaxoSmithKline, Glaxo Wellcome, Burroughs Wellcome, Hoechst Marion Roussell, Hoffman-LaRoche, Hospria Inc., Immunex, Ivax Pharmaceuticals, Janssen Pharmaceutical Products, Johnson & Johnson, Lipha, McGaw, Merck, Mylan Laboratories, Mylan Pharmaceuticals, Novartis, Ortho Biotech Products, Pfizer, Pharmacia, Pharma Investment, PurePac Pharmaceutical, Roche Laboratories, Roxane Laboratories, Sandoz, Sicor, Gensia Pharmaceuticals, Schering-Plough Corp., SmithKline Beecham Corp., GlaxoSmithKline, Teva Pharmaceuticals, Warrick Pharmaceuticals, and Z.L.B. Behring, among others.
Quest Reserves $241 Million
Quest Diagnostics has increased its litigation reserves to $241 million, noting that this amount "represents the minimum expected probable loss" due to False Claims Act litigation related to the government investigation of NID, a test-kit manufacturing subsidiary closed in 2006. Settlement talks with the U.S. Government are ongoing. >> To read more
Betting the House
From the perspective of an FCA lawyer, every case is a calculated risk, as plaintiff's counsel is only paid if they prevail, and large fraud cases may be under investigation for years. Yet, when a case is finally settled, it's rarely noted that lawyers, as well as relators, have been engaged in a long-term game of "bet your life." >> To read more
Wisconsin Passes State FCA
Wisconsin is the latest state to pass False Claims Act legislation, joining the ranks of neighbors Michigan, Illinois and Indiana, as well as such large states as California, Texas, New York, Florida, and New Jersey. >> To read the new law