False Claims Act Update & Alert

 
 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG          
March 18, 20
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Alpharma to Pay $42.5 Million   
Alpharma Inc. has agreed to pay
$42.5 million to settle a  False Claims Act case charging the company with kickbacks in connection with the sale of morphine-based drug, Kadian.  The drug company also misrepresented the safety and efficacy of the drug.  Though a settlement has been reached, HHS has expressly reservered the right "to institute, direct, or to maintain any administrative action seeking exclusion against Alpharma and/or King, and/or their officers, directors, and employees, from Medicare, Medicaid, and all other Federal health care programs."  >>
To read more

    

Mass. Joins Suit Against J&J
Massachusetts has joined a False Claims Act
lawsuit against Johnson & Johnson that contends the company paid tens of millions of dollars in kickbacks to get its drugs, especially the powerful antipsychotic drug Risperdal, prescribed to nursing home patients. >> To read more

Stimulus Under Investigation
The Recovery Accountability and Transparency Board reports that more than 1,700 fraud complaints have been received to date, and federal inspectors general are investigating 147 of those allegations, while federal prosecutors have opened investigations into 43 cases.  >> To read more

DoJ Needs More Resources
Writing in Business Week, Michael K. Loucks, the former Acting U.S. Attorney for Massachusetts, notes: "New laws increasing penalties on health-care cheats are useless weapons if there aren’t enough soldiers to wield them. U.S. attorneys offices haven’t had an increase in funding for health-care fraud since 2003... the number of federal prosecutors spending time on health-care fraud declined nationwide from 2004 to 2007 by 20, a decrease of 12 percent." >> To read more

Davis Bacon Triggers an FCA
Circle C Construction lost on summary judgment and was ordered to pay the U.S. Government $1.6 million for failing to abide by Davis-Bacon Act requirements on a building contract at Fort Campbell, KY.  >> To read more
 
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