False Claims Act Update & Alert

 
 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG          
October 28, 2008

 
     
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Lilly Reserves $1.4 Billion for
Off-Label Zyprexa Case
Eli Lilly says it is in the midst of "advanced discussions'' with U.S. and state officials to settle an off-label marketing case dealing with the antipsychotic drug Zyprexa.  As a consequence, the company will take a $1.42 billion charge in the third quarter, in expectation of a future settlement. >> To read more

    


Jury: Unum Defrauded SSDI

A jury says the Unum Group defrauded U.S. taxpayers by forcing customers to submit false claims for disability benefits to Social Security.  Damages will be assessed in future hearings. >> To read more

$160 Million in Utilities Case 
The Los Angeles Department of Water and Power (DWP) has decided not to appeal last year's court verdict and will pay Los Angeles County, the Los Angeles Unified School District, the Los Angeles Community College District and certain state agencies a total of $160 million to settle the largest recovery ever made against a utility company for overcharging customers. >> To read more

U.S. Sues FHA Lender
The U.S. Dept. of Justice has filed suit against Madison Home Equities Inc., charging them with intentionally manipulating loan applications of unqualified borrowers to make it appear they qualified for FHA-insured mortgage loans. The FHA-backed loans were written under HUD's Direct Endorser Program.  >> To read more

Medicare Outlier in NJ
St. Joseph Healthcare System Inc. has agreed to pay $1.75 million to settle a whistleblower lawsuit that alleged the Paterson, New Jersey, hospital engaged in Medicare fraud by inflating reimbursement claims.  >> To read more