False Claims Act Update & Alert

 
 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG          
July 8 , 2008

 
     
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Justice Needs More Resources
The Washington Post notes that more than 900 False Claims Act cases are currently backlogged and that "By its own account, the 75-lawyer unit in Washington that reviews the sensitive lawsuits is overloaded and understaffed. Only about 100 cases a year are investigated by the team, which works out of the commercial litigation branch of Justice's civil division."  >> To read more
 
   

DoJ Chases Fraudsters
to Dominican Republic

FBI Agents have gone to the Dominican Republic in order to chase down Medicare fraudsters who fled the U.S. The press in the Dominican Republic report that "the
case is very advanced."  >>
To read more
 

Glaxo & Novartis Lose on AWP  
An Alabama jury has ordered GlaxoSmithKline and Novartis to pay a combined total of $114 million for price-gouging the state's Medicaid program by lying about Average Wholesale Price (AWP).  Over 50 similar cases are awaiting action in Boston.  Alabama has told 69 drug companies facing similar charges in that state that they have 30-days to make an acceptable settlement offer. There will be no deals after that.  >> To read more


Judge Pushes to Settle Zyprexa Cases With Private Insurers

U.S. District Judge Jack Weinstein has issued a 291-page draft order saying the off-label marketing and price-gouging case against Eli Lilly is strong enough to warrant a trial and RICO charges.  The judge is encouraging Lilly to negotiate a worldwide settlement with private insurers, who are seeking up to $7.7 billion in reimbursements.  A massive False Claims Act case with similar facts is believed to be in settlement negotiations>> To read more