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Pharma Fraud

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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. WA

Celgene 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...

Eighth Circuit Rules That Public Disclosure Bar Applies in Drug Price Inflation Suit

Posted  05/31/17
By Hallie Noecker
Early this month, the U.S. Court of Appeals for the Eighth Circuit declined to revive a whistleblower’s False Claims Act (FCA) suit, ruling that prior litigation and government reports triggered the statutory public disclosure bar, even though the public disclosures at issue did not mention the defendants in the case. The case, United States ex rel. Lager v. CSL Behring. LLC, concerned fraud in the prescription drug...

April 20, 2017

Illinois-based drugstore giant Walgreen Co. agreed to pay $9.86 million to resolve allegations it violated the False Claims Act by submitting claims for reimbursement to California’s Medi-Cal program that were 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 former Walgreens pharmacist and a former pharmacy technician. They will receive a whistleblower award of roughly $2.3 million from the proceeds of the government's recovery. DOJ (EDCA)

Fraudster of the Week -- Monarch Medical Group

Posted  04/28/17
Last week, California state prosecutors charged 26 individuals, including 21 physicians and 2 pharmacists, in connection with a kickback scheme orchestrated by Tanya and Christopher King, the owners of a practice management company called Monarch Medical Group and other related companies.   If convicted, the involved physicians could face up to 25 years in prison and the pharmacists could face up to 28 years. ...
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