False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
June 10, 2011. . ![]()
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UCB to Pay $34 Million for Off-Label Marketing of Epilepsy Drug Keppra
UCB, a Belgian pharmaceutical company, has agreed to pay $34 million to settle a False Claims Act case alleging off-label promotion of the anti-epileptic drug Keppra for headache, mood control, and other non-FDA approved uses. The settlement includes civil penalties of nearly $26 million plus a criminal sanction of over $ 8.6 million. Other anti-epileptic drugs sold off-label for mood disorders, migraine, and bipolar disorders include Neurontin, Zonegran, and Trileptal. >> To read more
Five Banks Prepare to Pay More Than
$20 Billion for Mortgage Fraud
Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial are said to be preparing to pay as much as $20 billion to settle claims of widespread foreclosure abuse. Five separate investigations, conducted by the Department of Housing and Urban Development's inspector general have concluded that all five of the companies violated the False Claims Act. While settlement numbers are still being debated, so too are the terms of liability release. Some Attorneys General, such as New York's Eric Schneiderman, are conducting broader investigations with even more banks under the gun. The bottom line: the numbers here are likely to go up, not down. >> To read more
McKesson and First Databank
Have Very Big FCA Problems
Michigan Attorney General Bill Schuette has filed a lawsuit against national pharmaceutical wholesaler McKesson, as well as First Databank, a drug pricing publisher, for conspiring to artificially inflate prices for brand-name and generic drugs. Michigan claims it was overcharged by $2 billion. Both McKesson and First Databank appear to be fighting on very weak ground, as there is a lot of email traffic to support Michigan's claims of price manipulation. Look for other states to pile on in the future. >> To read more
Gentiva to Pay $12.5 Million
Gentiva Health Services, one of the largest providers of home health care services in the nation, has agreed to pay $12.5 million to settle claims that between 1998 and 2000 it fraudulently billed Medicare for costs associated with marketing. >> To read more
Radiology Clinic Pays $3 Million
for Kickback Violations
Midtown Imaging, a West Palm Beach, Florida radiology clinic, has agreed to pay $3 million to settle a False Claims Act case alleging the company submitted false claims to Medicare between 2000 and 2008 by entering into leasing and service agreements that violated the Anti-Kickback Statute and Stark Law. >> To read more.