False Claims Act Update & Alert

 
 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG          
May 5, 2009

 
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Forest Reserves $170 Million
Forest Laboratories has set aside $170 million to settle a False Claims Act case related to kickbacks paid to doctors for prescribing antidepressants Celexa and Lexapro to children, as well as for the off-label marketing of Levothroid. Forest notes that "there can be no assurance that the amount reserved by the Company will be sufficient and that a larger material amount will not be required." >> To read more
    

WellCare to Pay $80 Million

WellCare Health Plans has agreed to pay $80 million to settle charges the company inflated Medicaid charges in Florida. The settlement only applies only to Florida, and does not settle any other state or federal investigations of WellCare. >> To read more

Maxxam Pays for Forest Fraud
Maxxam Inc., and its Chairman, Charles Hurwitz, have agreed to pay $4 million to settle a False Claims Act case in which the company is alleged to have lied and manipulated a sustainable yield plan in order to get the Federal Government to pay more than it should have to acquire Pacific Lumber assets as part of the Headwaters Forest protection plan. >> To read more

Shipping Co. to Pay $26
Million
APL Ltd, a shipping firm in Oakland, California, has agreed to pay $26 million to settle a False Claims Act case in which the company was accused of knowingly overcharging and double-billing the Department of Defense in order to transport thousands of containers from ports to inland delivery destinations in Iraq and Afghanistan. >> To read more

DoJ Joins HSUS Lawsuit
Against Slaughterhouse

The U.S. Department of Justice has joined a False Claims Act case filed by the U.S. Humane Society against a Southern California slaughterhouse whose workers were videotaped pushing "downer" cows down a chute to be processed into school lunch meats. Westland-Hallmark Meat Co. was, at the time, the second largest supplier of hamburger to the National School Lunch Program, and fraudulently certified that
no meat from "downer" cows would enter the food supply. >> To read more

KBR Is Named in Majority of Iraq Frauds Under Investigation
April Stephenson, head of the Pentagon’s contract audit agency, says KBR is named in the “vast majority” of 32 cases referred for criminal investigation. She told the Wartime Contracting Commission that in the agency’s history, “I don’t think we are aware of a program, a contract or a contractor that’s had this number” of referrals. >> To read more

Merck Paid Elsevier for Fake
Peer-reviewed Journal
Merck paid science publisher Elsevier to publish a fake peer-reviewed scientific journal called Australasian Journal of Bone and Joint Medicine. Elsevier is also the publisher of Health News Daily, The Gray Sheet (coverage of the medical device industry), The Pink Sheet (coverage of the prescription drug industry) and The Green Sheet (a publication for pharmacists). >> To read more

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