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Pharma Fraud

This archive displays posts tagged as relevant to pharmaceutical fraud. You may also be interested in our pages:

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April 2, 2020

FPR Specialty Pharmacy LLC and Mead Square Pharmacy, Inc., along with owners Christopher Casey and William Rue, have agreed to pay $426,000 to settle a whistleblower-brought case alleging violations of the Anti-Kickback Statute and False Claims Act in connection with a compounded prescription analgesic cream called Focused Pain Relief.  As part of the settlement, the defendants admitted that from 2011 to 2015, they sold prescription drugs to patients in states they were not licensed to sell in, failed to charge mandatory co-pays to beneficiaries of various federal healthcare programs, and paid sales agents to solicit physicians to prescribe the cream.  USAO SDNY

April 1, 2020

A physician’s assistant in Louisiana, Stephen Honeycutt, has agreed to pay $620,500 for accepting illegal kickbacks from OK Compounding, LLC, which has been involved in multiple enforcement actions of a similar nature across the country.  Over a period of about six months in 2013, Honeycutt prescribed expensive compounded pain creams to patients, many of whom were Medicare and TRICARE beneficiaries, in exchange for kickbacks disguised as medical director fees.  USAO NDOK

March 20, 2020

A doctor in Florida has paid the United States $850,000 to settle claims of violating the Anti-Kickback and False Claims Acts.  In exchange for prescribing a powerful but highly addictive fentanyl spray, Subsys, to her patients, Dr. Parveen Khanna allegedly took illegal kickbacks from manufacturer Insys Pharmaceuticals, Inc that were disguised as speaker fees, then submitted claims for reimbursement to Medicare and TRICARE in violation of program rules prohibiting payment for kickback-induced services.  USAO MDFL

The COVID-19 Crisis, Whistleblowers, and the Constantine Cannon Whistleblower Team

Posted  03/19/20
Soapy hands under running water faucet
As Constantine Cannon announced earlier this week, in response to the coronavirus (COVID-19) crisis, we have implemented contingency plans to work remotely.  While our work locations have changed, we remain dedicated to our whistleblower clients, and our team continues to provide whistleblowers with support and legal guidance. With offices in New York, D.C., San Francisco, and London, the Constantine Cannon...

Medicaid Drug Rebate Fraud: Should it be an Enforcement Priority?

Posted  03/10/20
pill container spilled over with pills in the form of a dollar sign
Medicaid has one very intuitive approach to keeping drug prices in check. Drug companies, under a law called the Medicaid Drug Rebate Program, must rebate Medicaid programs any money that resulted from the increased drug prices outpacing inflation. Inflation is benchmarked to either 1990, or the first year a drug came to market, which ever is later. As an example of how this works, imagine a pharmaceutical company...

February 28, 2020

Cardinal Health, a pharmaceutical company in Ohio, has agreed to pay more than $8 million to resolve charges of violating the Foreign Corrupt Practices Act.  Between 2010 and 2016, the company's China branch allegedly made payments to government-employed healthcare professionals and retail companies on behalf of a European dermocosmetic company whose products Cardinal China distributed.  Additionally, the company took part in a profit-sharing agreement with the dermocosmetic company, and failed to maintain complete records on the affected accounts.  As part of the settlement, Cardinal Health will cease and desist and pay $5.4 million in disgorgement, $916,887 in prejudgment interest, and $2.5 million in civil penalty.  SEC

February 28, 2020

Sanofi-Aventis U.S., LLC has agreed to pay $11.85 million to resolve allegations of paying kickbacks to Medicare patients in connection with a multiple sclerosis drug called Lemtrada.  According to the press release, Lemtrada costs nearly $100,000 per patient per year, and Medicare co-pays can be many thousands of dollars per year.  In order to break down barriers to access for Medicare patients, Sanofi allegedly provided kickbacks to them via payments to a purportedly independent charitable foundation, The Assistance Fund (TAF), which helps covers the co-pays in violation of the Anti-Kickback Statute.  The scheme was reported by a partnership formed by Sanofi's predecessor, Genzyme Corporation, which will receive about $2.7 million for their role in the case.  USAO MA

First Circuit Revives Whistleblower Suit Against PharMerica, Rejecting Public Disclosure Challenge

Posted  02/28/20
boston-first-circuit-building
Rejecting an argument that only a fraudster could love, the First Circuit Court of Appeals revived a whistleblower’s lawsuit and rightly recognized that whistleblowers can have “direct” knowledge of fraud even if they did not themselves participate in the fraud. In United States ex rel. Banigan & Templin, et al. v. PharMerica, Inc., the First Circuit interpreted the so-called “original source” provision of...

February 26, 2020

The two owners and operators of Royal Care Pharmacy in Los Angeles have been ordered to pay restitution of $11.8 million to Medicare and $17,000 to Cigna after being found guilty of healthcare fraud and money laundering.  Aleksandr Suri and Maxim Sverdlov were also sentenced to 12 years in prison.  From 2012 to 2015, the two had fraudulently billed Medicare and Cigna for prescription medications that were not purchased or dispensed to beneficiaries, hiding the conspiracy and laundering the proceeds through fake invoices.  DOJ

February 25, 2020

In a global settlement agreement with states and local entities, Mallinckrodt, the largest generic opioid manufacturer in the United States, has agreed to pay at least $1.6 billion in cash to a trust that would help fund treatment for opioid addiction.  Mallinckrodt also agreed to be subject to stringent injunctive terms, including prohibitions on the marketing of its opioid products and safeguards to prevent them from ending up in the wrong hands.  The pharmaceutical company had earlier paid $35 million to the DOJ for other opioid related charges.  CA AG; FL AG; GA AG; VA AG
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