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False Claims Act Update & Alert |
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Taxpayers
Against Fraud Education Fund | Washington, D.C. |
WWW.TAF.ORG
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n TAF Home Page n Previous Newsletters n Email editor
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 Watson
and Sandoz Settle AWP Cases For Combined Total of $155 Million Watson Pharmaceuticals has agreed to pay $79 million, and Novartis's Sandoz unit has agreed to pay $66 million, to resolve two False Claims Act cases filed by Ven-a-Care of the Florida Keys charging the companies with systematically defrauding U.S. and state governments by causing Medicaid to overpay for generic drugs. This is the 18th successful lawsuit filed by Ven-a-Care, a small specialty pharmacy that has helped recover more than $2.3 billion of America's stolen money. >> To read more | ||||||
 DoJ
Joins Case Against Par DoJ and 20 states have joined a False Claims Act case against Par Pharmaceuticals alleging Par and two foreign companies (Alphapharm and Genpharm) worked to defraud Medicaid by conspiring with Walgreens and other pharmacies to illegally switch prescriptions of generic Prozac (fluoxetine) and Zantac (ranitidine) to Par’s products which were billed to Medicaid at significantly higher prices. The case is being brought by Chicago pharmacist Bernard Lisitza, who has previously helped win FCA settlements and recoveries for the U.S. Government of $50 million (Omnicare, 2006), $37 million settlement (CVS, 2008), and $35 million (Walgreens, 2008). Just two weeks ago, Par settled another FCA lawsuit for $154 million. >> To read more | ||||||
 Relator
Nails Maxim for $150 MillionMaxim, one of the nation's largest health care staffing agencies, has agreed to pay $150 million settlement to settle a False Claims Act case filed by patient Richard West who discovered the company had billed for so many fraudulent services in his name that they had exceeded a monthly Medicaid cap, resulting in his being denied needed services. Noted a columnist in The Baltimore Sun, "If Washington is as serious about fighting medical fraud as it pretends to be, it will recruit an army of Richard Wests to burn off leeches like Maxim.... One man. One wheelchair, one respirator, one computer. And an outrage that somebody was ripping off the program that was keeping him alive." >> To read more | ||||||
 CardioNet
Plunges 20% on DoJ Probe On August 25, CardioNet received a Civil Investigative Demand issued by the U.S. Attorney in the Western District of Washington, and stock in the company quickly plunged 20 percent. According to the company, the investigation involves whether inappropriate diagnosis codes may have been used when Medicare was billed for real-time, outpatient cardiac monitoring services. >> To read more | ||||||
 BP
Amoco to Pay $20.5 MillionBP Amoco (formerly Amoco Corp.) and related companies have agreed to pay $20.5 million to settle a False Claims Act case filed by Harold Wright. The United States government initially declined to intervene in this case, but intervened at the last moment "for the purpose of completing this settlement." Mr. Wright, who is now deceased, helped to recover more than $270 million in oil and gas revenue stolen from federal and Indian leases. >> To read more | ||||||
 U.S.
Joins Suit Against Halifax HospitalDoJ has joined a FCA lawsuit filed against Halifax Hospital Medical Center of Daytona Beach, Florida. After reading the complaint, Aaron Liberman, a professor of health management at the University of Central Florida who has done consulting work for Halifax in the past said said he hoped the allegations weren't true, but that he was "shocked" by the specificity of the charges. >> To read more | ||||||
 $125
Billon a Year in Improper Payments,With $70 Billion by Medicare and Medicaid According to April testimony to a House panel by Kay Daly, the Government Accountability Office’s director of financial management and assurance, the U.S. Government made $125 billion in improper payments in 2010, of which the U.S. Centers for Medicare and Medicaid Services accounted for the largest portion; $70.4 billion of the total. >> To read more | ||||||
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TAF
Scios
Pays $85 Million for Off-label