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Pfizer Agrees to Pay $23.85 Million to Resolve False Claims Act Liability for Paying Kickbacks

Posted 05/24/18

The Department of Justice today announced that Pfizer agreed to pay $23.85 million to resolve allegations that it used a foundation as a conduit to pay the copays of Medicare patients taking three Pfizer drugs. Medicare Part B or D beneficiaries typically make a partial payment when obtaining prescription drugs in the form of a copay, coinsurance, or deductible. Under the Anti-Kickback Statute, pharmaceutical...

Tagged in: Anti-Kickback and Stark, FCA Federal, Healthcare Fraud, Pharma Fraud,

Ex-Manager and CEO Convicted in $9.7 Million Valeant Kickback Scheme

Posted 05/23/18

By the C|C Whistleblower Lawyer Team Yesterday, a federal jury in Manhattan convicted Gary Tanner, a midlevel executive at Valeant Pharmaceuticals International, and Andrew Davenport, the CEO of Philidor Rx Services, of conspiring to bring about Valeant’s purchase of Philidor in exchange for a $9.7 million kickback. The scheme allegedly netted Davenport $40 million, and he kicked back a portion of it to...

Tagged in: Financial and Investment Fraud, Pharma Fraud,

Jazz Pharmaceuticals Sets Aside $57M to Settle DOJ Probe

Posted 05/9/18

Jazz Pharmaceuticals Plc disclosed yesterday it has reached a tentative agreement to pay $57 million to resolve a Justice Department probe over its donations to charities that reduce drug prices for Medicare patients. The company manufactures Xyrem, a costly drug used to treat narcolepsy. Jazz had previously received multiple DOJ subpoenas concerning its charitable donations and announced the agreement in principle...

Tagged in: Pharma Fraud,

Supreme Court Considers Revisiting Key FCA Decision

Posted 04/17/18

By the C|C Whistleblower Lawyer Team Yesterday, the justices asked the Trump Administration’s Office of the Solicitor General’s views on a petition for certiorari in United States ex rel. Campie v. Gilead Scis., a False Claims Act (FCA) suit against pharmaceutical giant Gilead Sciences. The suit, which was brought by two former Gilead employees turned whistleblowers, alleges the company made false statements...

Tagged in: FCA Federal, FCA Materiality, FDA Fraud, Pharma Fraud,

Alere to Pay $33.2 Million to Settle FCA Allegations Relating to Unreliable Diagnostic Testing Devices

Posted 03/23/18

By the C|C Whistleblower Lawyer Team Massachusetts-based medical device manufacturer Alere Inc. and its subsidiary Alere San Diego have agreed to pay the United States $33.2 million to resolve allegations that Alere caused hospitals to submit false claims to Medicare, Medicaid, and other federal healthcare programs by knowingly selling materially unreliable point-of-care diagnostic testing devices, the Justice...

Tagged in: Defective Products, FCA Federal, Medical Devices and DME,

Martin Shkreli Sentenced to Seven Years in Prison for Fraud

Posted 03/12/18

By the C|C Whistleblower Lawyer Team The New York Times reported on Friday that Martin Shkreli, the former pharmaceutical executive nicknamed “Pharma Bro” was sentenced to seven years in prison related to his involvement in pharmaceutical company Retrophin and two hedge funds he operated. Shkreli is best known for raising the price of Daraprim, a drug to treat toxoplasmosis, by 5000% in 2015. In August, Shkreli...

Tagged in: Pharma Fraud,

United States Targets a Private-Equity Firm and Pharmacy in a Whistleblower Case

Posted 02/26/18

By the C|C Whistleblower Lawyer Team On Friday the Wall Street Journal reported on the U.S. government’s decision to intervene in a False Claims Act qui tam case against pharmacy Diabetic Care Rx LLC and the private equity firm that holds a controlling stake in the pharmacy, Riordan Lewis & Haden Equity Partners (“RLHEP”). Diabetic Care is a compounding pharmacy that mixes different ingredients to create...

Tagged in: Compounding Pharmacy Fraud, Defendants, FCA Federal, Other Government Health Programs, Pharma Fraud, Whistleblower Case,

Greek Parliament Opens Investigation into Pharmaceutical Bribery

Posted 02/22/18

By the C|C Whistleblower Lawyer Team After twenty hours of debate, the Greek Parliament has approved the creation of a committee to investigate accusations that Novartis, a Swiss pharmaceutical company, bribed at least ten high-level politicians. The investigation will now hold separate and secret votes on whether each of the ten involved politicians should be investigated. The list of politicians includes two...

Tagged in: FCPA, International Whistleblowers, Pharma Fraud,

Fraudster of the Week -- Pharmacy Fraudster Steven Butcher

Posted 02/16/18

By the C|C Whistleblower Lawyer Team On Wednesday, former pharmaceutical sales representative Steven Butcher admitted to running a $45 million scheme to swindle both federally-funded and private health care benefit programs. Butcher was charged with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the Anti-Kickback Statute, a law designed to remove financial incentives...

Tagged in: Anti-Kickback and Stark, Catch of the Week, Compounding Pharmacy Fraud, Lack of Medical Necessity, Other Government Health Programs, Pharma Fraud,

Fraudster of the Week -- Former Football Player Monty Grow

Posted 02/9/18

By the C|C Whistleblower Lawyer Team On Monday, a federal jury in Miami unanimously convicted Monty Grow of running a compound pharmaceutical drug conspiracy that bilked $20 million from TRICARE, a healthcare program for military members and their families. Grow was a star linebacker at the University of Florida in the early 1990s and spent two seasons as a cornerback in the NFL. Prosecutors accused Grow of...

Tagged in: Anti-Kickback and Stark, Catch of the Week, Compounding Pharmacy Fraud, Healthcare Fraud, Lack of Medical Necessity, Other Government Health Programs, Pharma Fraud,

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Pfizer Agrees to Pay $23.85 Million to Resolve False Claims Act Liability for Paying Kickbacks

Ex-Manager and CEO Convicted in $9.7 Million Valeant Kickback Scheme

Jazz Pharmaceuticals Sets Aside $57M to Settle DOJ Probe

Supreme Court Considers Revisiting Key FCA Decision

Alere to Pay $33.2 Million to Settle FCA Allegations Relating to Unreliable Diagnostic Testing Devices

Martin Shkreli Sentenced to Seven Years in Prison for Fraud

United States Targets a Private-Equity Firm and Pharmacy in a Whistleblower Case

Greek Parliament Opens Investigation into Pharmaceutical Bribery

Fraudster of the Week -- Pharmacy Fraudster Steven Butcher

Fraudster of the Week -- Former Football Player Monty Grow

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