False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
March 31, 2008
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Abilify Maker to Pay $4 Million
A U.S. subsidiary of a Japanese pharmaceutical company, has agreed to pay more than $4 million to settle charges it illegally marketed anti-psychotic drug Abilify. >> To read more
HealthEssentials Not Likely to Pay Back Stolen Millions
The U.S. attorney's office in Kentucky says that "given the financial state of HealthEssentials, it is doubtful that the United States will recover any proceeds" from the more than $120 million ($3 million criminal and $117 million civil) that the company stole from Medicare by billing visits to assisted-living facilities as if they were visits to private residences>> To read more
AWP Class Action Certified
A United States District Court judge has certified a nationwide class-action lawsuit against McKesson Corporation that could, according to the law firm filing the case, become the largest class action in the United States. The case has a False Claims Act connection because it deals with Average Wholesale Price fraud, and the facts are parallel to False Claims Act litigation in the same court before the same judge. >> To read more
Derived Off-label Liability?
A judge has ruled Pfizer and Warner-Lambert may be liable for off-label marketing for a generic drug made by a third-party, even though neither company made money from the generic sales. The rationale: Pfizer and Warner-Lambert initiated the off-label promotion that created demand for off-label use. >> To read more
Psychiatrist to Pay $1.1 Million
Cleveland psychiatrist Gulshan Sultan has agreed to pay $1.1 million to resolve claims against her in a joint lawsuit brought by the federal government and the state of Tennessee. Dr. Gultan was billing for work performed by a nurse, and for time-based services well in excess of 24 hours a day. >> To read more