False Claims Act Update & Alert

 
 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG          
May 13, 2011

 
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Quest to Pay $241 Million
Quest Diagnostics says it has agreed to pay $241 million to resolve a California False Claims Act case alleging the company overbilled the state Medicaid program for diagnostic-testing. The Quest case is one of seven private medical lab cases brought by Chris Riedel, CEO of Hunter Laboratories, whose company refused to price-gouge. The other six defendant companies are: Health Line Clinical Labs; Westcliff Medical Labs; Physicians Immunodiagnostic Laboratory; Whitefield Medical Laboratory; Seacliff Diagnostics Medical Group, and; Laboratory Corporation of America.  >> To read more 
 
    

 


Why Is No One in Jail?
Hundreds of thousands of nursing home residents were illegally drugged says a new report from the Department of Health and Human Services. Notes HHS Inspector General Daniel R. Levinson: "Despite the fact that it is potentially lethal to prescribe antipsychotics to patients with dementia, there's ample evidence some drug companies aggressively marketed their products towards such populations, putting profits before safety..." >> To read more
 

Grassley Sends SEC a Strong Message
Sen. Charles Grassley (R-Iowa) has sent a strong letter to SEC chairwoman Mary Schapiro asking her agency to derail any proposed rule that would require whistleblowers to internally report to compliance officers before filing with the SEC. "The SEC's primary purpose is to protect investors – not internal compliance programs – from potential harm caused by fraud and misconduct," said Grassley.
>> To read more

Big Oil Shells Out Again
The Shell Oil Company has agreed to pay $2.2 million to settle a False Claim Act case charging the company with knowingly underpaying royalties owed on natural gas produced from Federal lands. This case is one of a small train of successful cases filed and won by the Harrold Wright. >> To read more

Forest Labs Gets Another Subpoena
HHS OIG is moving to exclude Forest Labs CEO Howard Solomon from doing business with the federal government for past fraud, even as it subpoenas the company for more fraud, this time dealing with marketing of its hypertension drugs Benicar, Benicar HCT and Azor. >> To read more

DoJ Money May Have Strings
Senators Charles Grassley (R-IA) and Senators Patrick Leahy (D-VT) have cosponsored a bill to increase funding for Justice Department anti-fraud activities by $15 million, but a small string is attached: DoJ will have to issue an annual report to Congress on False Claims Act Settlements. Said Sen. Grassley: "Without transparency and accountability the fight to combat fraud often falls short..." >> To read more
 
 
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