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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...

Supreme Court Considers Revisiting Key FCA Decision

Posted  04/17/18
Supreme CourtBy 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...

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...

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...

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...

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...

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...

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...

Fraudster of the Week -- New Orleans "Pill Mill" Doctor

Posted  02/2/18
By the C|C Whistleblower Lawyer Team A Louisiana federal judge has sentenced Dr. Frederick Floyd to 10 years in prison for operating two New Orleans-based “pill mills.” Last September, Floyd pleaded guilty to dispensing millions of dosages of oxycodone, fentanyl and other addictive drugs to patients. The special agent in charge of the DEA’s New Orleans Field Division noted that Floyd’s “disgraceful...

Tennessee Chiropractor Pays More Than $1.45 Million to Resolve False Claims Act Allegations

Posted  01/26/18
By the C|C Whistleblower Lawyer Team A Lenior City, Tennessee, chiropractor has paid $1.45 million, plus interest, to resolve False Claims Act violations. Matthew Anderson and his management company, PMC LLC, managed four pain clinics in Tennessee, most recently known as; Cookeville Center for Pain Management; Spinal Pain Solutions in Harriman; Preferred Pain Center of Grundy County in Gruetli Laager; and McMinnville...
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