False Claims Act Update & Alert

 
 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG          
September 30, 2009

 
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Lilly settles with Eight States
West Virginia, Connecticut, Minnesota, Montana, New Mexico, Louisiana, Utah and Idaho have settled their Zyprexa off-label marketing claims with Eli Lilly.   leaving just Arkansas, Mississippi, Pennsylvania and South Carolina left to go.  South Carolina's case is set for trial on Oct. 5th. It remains to be seen whether the Federal Government will seek a share of these state settlements.  >> To read more
    

More Kyphon Settlements
Three hospitals in Alabama and three in Indiana have agreed to pay a total of $8.36 million to settle False Claims Act charges they unnecessarily kept thousands of patients overnight in a scheme to bill Medicare up to $7,000 more for each procedure. These cases are related to a Medtronic case settled for $75 million in May of 2008. >> To read more.

Alan Grayson on Bigger Fish
Congressman Alan Grayson (D-FL) notes that legislation being bandied about in the House and Senate to ban federal funds from ACORN is actually much more broadly written, and would ban hundreds of companies if signed into law -- many of them companies nailed for criminal and civil violations under the False Claims Act.  >> To read more

Payola Politics and the FDA?
The FDA says four New Jersey congressmen and its own former commissioner unduly influenced the approval process for a patch for injured knees.  As The New York Times noted, "The agency has never before publicly questioned the process behind one of its approvals, never admitted that a regulatory decision was influenced by politics, and never accused a former commissioner of questionable conduct." >> To read more

Nelnet Whistleblower
 
Jon Oberg, A former Department of Education researcher who brought to light a loophole that allowed student loan companies such as Nelnet to reap hundreds of millions in profits at taxpayers' expense, has filed a whistleblower lawsuit alleging the Dept. of Education let the companies get away with the fraud. >> To read more

Fruit Company Settles FCA
 
East Coast Fruit Company of Georgia, through its successor company, R &J, have agreed to pay $685,000 to settle False  Claims Act charges alleging the company bill-padded on a $6.4 million contract to provide fruit and vegetables to Department of Defense facilities in South Carolina.  >> To read more

CRS on the FCA
Two basic guides to the False Claims Act have recently been published by the Congressional Research Service:
4
Qui Tam: An Abbreviated Look at the FCA and Related Federal Statutes (12-page PDF)
4Qui Tam: The FCA and Related Federal Statutes (49-page PDF)
 
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