False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
February 24, 2009| ![]()
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Pharma Lawyers Now Driving Billion Dollar Settlements
Would $1,000-an-hour lawyers for big pharmaceutical companies continue to litigate if they were paid only if they won? That's a question pharmacy company executives might want to start asking in the wake of the fifth straight loss in an Average Wholesale Price case at the state level. Here's how the cases line up by state, company, and jury verdict, with the last number a "national number" when the state verdict is weighted by population:4Alabama - AstraZeneca - $215 million - $14.06 billion
4Alabama - GlaxoSmithKline - $81 million - $5.29 billion
4Alabama - Novartis -- $33 million - $2.15 billion
4Missouri - Schering-Plough - $107 million - $5.55 billion
4Wisconsin - Pfizer - $153 million - $8.7 billionThe Wisconsin verdict is the latest blow to the pharmaceutical industry, but it will not be the last as Sandoz is about to go to trial in Alabama and dozens of other companies are lined up behind that.
Shipping Firm to Pay $26 Million
APL Ltd, an Oakland, California shipping company has agreed to pay the U.S. Government $26.3 million to settle a False Claims Act case charging it with fraudulently inflating bills for shipping cargo to the U.S. military in Iraq and Afghanistan. >> To read more
DoJ Joins FCA Suit Against
Scios and Johnson & Johnson
The U.S. Justice Department has joined two whistleblower lawsuits alleging that Johnson & Johnson and Scios engaged in off-label marketing of the cardiac drug Natrecor. >>To read more
Liberty Medical ... Again
Diabetes-supply firm Liberty Medical has been served a subpoena as part of an HHS investigation. Liberty Medical settled a False Claims Act Case in 2004 for $30 million. >> To read more
Katrina Case Reinstated
The U.S. Fifth Circuit Court of Appeals has reinstated a New Orleans whistleblower lawsuit against insurers that allegedly overbilled the National Flood Insurance Program after Hurricane Katrina. The lawsuit, by Branch Consultants, was dismissed in October of 2007 on the grounds that its core allegations were already covered by a rival whistleblower suit in Mississippi. >> To read more
IRS Whistleblower Case
Settled for $780 Million
UBS AG, Switzerland’s largest bank, will pay $780 million to settle charges it helped thousands of wealthy Americans evade taxes. UBS settled after Heinrich Kieber, a former employee of a Liechtenstein bank, brought documents to the IRS detailing massive tax cheating by U.S. citizens. >> To read more
Pennsylvania Needs an FCA
The Philadelphia Inquirer says: "Pennsylvania is missing out on an opportunity to collect tens of millions of tax dollars that are misspent by hospitals, drug-makers, and other companies that receive state funds. Lawmakers in Harrisburg should pass a state version of the federal False Claims Act, which is used to collect billions of dollars stolen from the government by contractors... If Pennsylvania had a False Claims Act, it might use it to recoup triple damages in [a] recent case ... Triple damages in that case could result in an award of $174 million."
AT&T Pays $8.2 Million
AT&T has agreed to pay over $8.2 million to settle charges it violated the False Claims Act in connection with the Federal Communication Commission's E-Rate program which is designed to bring the Internet to poor or under-served schools. >> To read more
Million Dollar Adult Diaper Fraud
The owner of a Texas medical supply company has been charged with fraudulently billing the U.S. Government for $1 million in adult diapers that customers never received. >> To read more..