False Claims Act Update & Alert

 
 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG          
June 3, 2009

 
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Aventis Settles for $95.5 Million
Aventis (now Sanofi-aventis) has agreed to pay $95.5 million to settle charges the company knowingly cheated Medicaid by overcharging for anti-inflammatory nasal sprays.  Aventis sold the nasal spray to Kaiser Permanente for less than it sold it to Medicaid -- a violation of Medicaid best price rules.  >> To read more
 
    

Pogue Case Against Healthways Settles for $40 Million
It took 15 years, but
A. Scott Pogue's whistleblower case against Healthways and the Diabetes Treatment Centers of America, has finally been settled for $40,000,000 in damages and fees. The case was initiated in June 1994, and was not joined by the Federal Government, but Uncle Sam will, nonetheless, be collecting many million of dollars  thanks to a hardworking legal team and a tenacious whistleblower.  >> To read more

Crooks Worry About Tougher FCA
The
National Law Journal notes that
companies that defraud the government, and the lawyers trying to defend them, are worried that the False Claims Act and the U.S. Department of Justice now have sharper tools for going after fraudsters. The article quotes TAF President Jeb White along with TAF members Shelley Slade and Peter Chatfield.  >> To read more
 


Senator Charles Grassley on Bipartisan Support
for Amendments to the False Claims Act



 


Documents Show AstraZeneca Marketed Seroquel Off-label
A
strategy document emailed around AstraZeneca in February 2001 said that in "2001 communications will focus on increasing the existing off-label usage of Seroquel in [bipolar disorder], estimated to account for around 20 per cent of current prescriptions and growing strongly."  Other documents released in a document dump by lawyers show that David Brennan, then head of AstraZeneca's US business, and now CEO of the company, knew that salesmen were targeting doctors in order to encourage them to sell the powerful atypical antipsychotic for use in children, despite the fact that Seroquel has never been approved for use by minors. >> To read more

URS Unit Pays $1.7 Million
EG&G Technical Services Inc, a subsidiary of URS Corp., has agreed to pay $1.7 million for double-billing the U.S. Air Force for aircraft parts and services.  >>To read more
 

Alabama Hits Hard
The State of Alabama has settled six Average Wholesale Price fraud cases for $89 million.  So far, Alabama has won jury verdicts totaling over $352 million in AWP cases, while bringing in over $123 million in AWP settlements.  The state is moving to trial against 45 other drug makers, with the Watson Pharmaceuticals case to begin on June 22nd. >> To read more
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