False Claims Act Update & Alert

 
 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG          
November 10, 2009

 
 

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Guidant to Pay $296 million
Guidant's parent company, Boston Scientific, has made an "agreement in principal" to pay the U.S. Government $296 million to settle a case involving defective defibrillators billed to Medicare and Medicaid. This case is separate and apart from an investigation, underway in Boston, involving suspected illegal marketing practices associated with 

defibrillators and other heart-rhythm devices. >> To read more

  

 

 

Omnicare and Ivax Pay $112 Million to Settle Kickback Charges
DoJ has announced a $112 million settlement with Omnicare and IVAX Pharmaceuticals to resolve multiple whistleblower lawsuits,  The FCA lawsuits allege Johnson & Johnson paid kickbacks to Omnicare and two nursing home chains so doctors would prescribe Risperdal to patients for which it was an improper medication.  In addition, IVAX paid $8 million to Omnicare to facilitate a drug-switching scheme.  Finally,
Omnicare, and two nursing home chains conspired to have Omnicare pay $50 million in order to keep a pharmacy services contact. >> To read more


Defective Bunker Buster Fuzes
DoJ has filed a lawsuit against Kaman Dayron Inc., alleging the defense contractor violated the False Claims Act by knowingly substituting non-conforming parts in fuzes supplied to the military for use in "bunker buster" bombs. The nonconforming fuzes could cause the bombs to fire prematurely>> To read more


Abbott Faces Depakote Probe

Abbott Labs, already under the gun in one False Claims Act lawsuit joined by DoJ, is now under investigation for illegal marketing of Depakote, a drug used to treat bipolar disorder, seizures and migraines.  The U.S. Attorney in the Western District of Virginia is handling the probe. >> To read more


SEC Whistleblower Bill on Horizon?
The House Financial Services Committee has reported out H.R. 3817, the Investor Protection Act, introduced by Congressman Paul E. Kanjorski (D-PA).  The bill would, among other things, strengthen the SEC's
whistleblower bounty program by creating stronger incentives for individuals to come forward to report illegal securities market activities.  >> To read more


 

 

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