Pharma Fraud
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July 11, 2017
Mallinckrodt LLC, a pharmaceutical manufacturer and one of the largest manufacturers of generic oxycodone, agreed to pay $35 million to settle allegations it violated certain provisions of the Controlled Substances Act. According to DOJ, it is the first settlement of its magnitude with a manufacturer of pharmaceuticals resolving nationwide claims the company did not meet its obligations to detect and notify DEA of suspicious orders of controlled substances such as oxycodone. DOJJuly 7, 2017
Wal-Mart Stores Inc. agreed to pay $1.65 million to resolve allegations it violated the False Claims Act by submitting pharmacy claims to California’s Medi‑Cal program not supported by applicable diagnosis and documentation requirements. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a Wal-Mart pharmacist. The whistleblower will receive a whistleblower award of roughly $264,000 from the proceeds of the government's recovery. DOJ (EDCA)Martin Shkreli is Found Guilty of Fraud
Posted 08/7/17
By the C|C Whistleblower Lawyer Team
A recent New York Times story details the reaction to a federal jury finding Martin Shkreli guilty on three counts of fraud. Shkreli faces up to twenty years in prison for each of the first two counts and five years in prison on the final count with sentencing pending. The jury spent five days deliberating before coming to its three guilty verdicts and acquitting Shkreli on five...
July 26, 2017
Washington recovered nearly $750,000 in Medicaid reimbursement this week from pharmaceutical company Celgene Corporation for promoting medications to treat conditions they were not approved for, including certain types of cancer. The company is also accused of paying kickbacks to doctors for prescribing the medications and helping them change billing codes to ensure Medicaid would pay for their use. Off-label marketing, fraudulent billing and providing kickbacks to doctors are all violations of the Medicaid False Claims Act. WACelgene to Pay $280M to Resolve Fraud Allegations
Posted 07/26/17
By the C|C Whistleblower Lawyer Team
Pharmaceutical manufacturer Celgene Corp. agreed to pay $280 million to settle claims that it illegally promoted two cancer drugs, Thalomid and Revlimid, for unapproved uses. The case was filed by a former Celgene sales representative under the False Claims Act, which allows individuals to sue to recover government dollars and share in any recovery.
The New York Times reports...
July 24, 2017
New Jersey-based pharmaceutical manufacturer Celgene Corp. agreed to pay $280 million to settle charges of violating the False Claims Act by promoting two cancer treatment drugs -- Thalomid and Revlimid -- for uses not approved by the FDA. The allegations included the use of false and misleading statements about the drugs, and paying kickbacks to physicians to induce them to prescribe the drugs. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by former Celgene sales manager Beverly Brown. She will receive a yet-to-be-determined whistleblower award from the proceeds of the government's recovery. DOJ (CDCA)Ninth Circuit Finds Materiality in the Face of Continued Government Payment
Posted 07/14/17
By Rosie Dawn Griffin
Earlier this month, the U.S. Court of Appeals for the Ninth Circuit revived United States ex rel. Campie v. Gilead Scis., a False Claims Act (FCA) suit against pharmaceutical giant Gilead Sciences and, in doing so, provided the qui tam bar with additional guidance on how the lower courts will interpret the Supreme Court’s emphasis on materiality in Universal Health Services, Inc. v....
U.S. Charges 412, Including Doctors, in $1.3 Billion Health Fraud
Posted 07/14/17
By the C|C Whistleblower Lawyer Team
Hundreds of people nationwide, including dozens of doctors, have been charged in health care fraud prosecutions, accused of collectively defrauding the government of $1.3 billion. Nearly one-third of the 412 charged were accused of opioid-related crimes. The health care providers, about 50 of them doctors, billed Medicare and Medicaid for drugs that were never purchased;...
Fraudster of the Week -- "Pharma Bro" Martin Shkreli
Posted 06/30/17
By the C|C Whistleblower Lawyer Team
On Wednesday, opening statements were delivered in the trial of Martin Shkreli, the “pharma bro” who is best known for his fiftyfold price increase of the lifesaving HIV/AIDS drug Daraprim while CEO of Turing Pharmaceuticals. Shkreli is being tried, however, on several counts of securities and wire fraud dating from his time running the hedge funds MSMB Capital and MSMB...