False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
September 2, 2010. . ![]()
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Allergan Settles for $600 Million
Allergan has agreed to pay $600 million to settle a False Claims Act case arising from off-label marketing of Botox. Allergan employed outside companies to help manage a reimbursement hotline which provided free on-demand services to doctors prescribing off-label Botox (see complaint #1 and complaint #2) as well as created workshops and dinners and paid doctors to promote off-label Botox use. The settlement includes $375 million in criminal fines and a $225 million civil settlement, of which $12 million will go to the states. Five whistleblowers and their lawyers (see press release #1 and press release #2) will share an award of $37.8 million (see settlement.
HP Pays $55 Million for Kickbacks
DoJ has formally announced that Hewlett-Packard will pay $55 million to settle a False Claims Act case in which the company has been charged with defrauding the General Services Administration by paying kickbacks to systems integrator companies. Ironically, the same day DoJ announced this settlement, H-P announced it had been selected by the U.S. Air Force for a five-year Blanket Purchase Agreement worth up to $800 million. >> To read more
Contractors Afraid of Their Records?
Government vendors and contractors are trying to block a new law that would require public disclosure of fraudulent or substandard performance on federal contracts. The database, called the Federal Awardee Performance and Integrity Information System, has existed since 2008, but is currently only open to Government contact officers. >> To read more
Saint John's Health to Pay $5.25 Million
Saint John’s Health Center in Santa Monica, California, has agreed to pay $5.25 million to settle a False Claims Act case alleging the company lied in order to increase Medicare “outlier" payments. >> To read more.