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Whistleblower Case

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Page 86 of 111

June 27, 2016

Ten North Texas companies and individuals agreed to pay $1.125 million to resolve charges they violated the False Claims Act for failing to comply with rules and regulations governing Medicaid transportation services.  The companies include: Irving Holdings, Inc. (together with its predecessor companies Big Tex Taxi Corporation, Terminal Taxi Corporation, Choice Cab, Inc., Yellow Checker Cab of Dallas, Inc., and Yellow Checker Cab of Fort Worth, Inc.); JetTaxi, Inc.; Dallas Taxi, LLC; US Cab, LLC; Terminal Taxi Corporation of Irving; Classic Shuttle Acquisition Corporation, Inc.; and Dallas Car Leasing, LLC.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Robert Spence, Mike Jones, and Cheryl Jones.  They were employees of Irving Holdings, one of the largest taxicab companies in the US.  They will receive a whistleblower award of $202,500 from the proceeds of the government's recovery.  DOJ (EDTX)

June 9, 2016

Raleigh, North Carolina-based specialty pharmacy Salix Pharmaceuticals, Inc., which sells products used to treat various gastroenterology conditions, agreed to pay $54 million to settle charges it violated the federal Anti-Kickback Statute and False Claims Act by using its “speaker programs” as a mechanism to pay kickbacks to doctors to induce them to prescribe Salix drugs and medical devices.  Specifically, the government alleged Salix held sham speaker programs, frequently at high-end restaurants, where doctors were paid substantial honoraria purportedly to educate other doctors about a Salix product, but in reality spent little or no time discussing the product.  $16,578,000 of the settlement amount will go to the Medicaid programs of different states including Ohio.  The allegations originated in two whistleblower lawsuits filed under the qui tam provisions of the False Claims Act.  The whistleblowers will receive a yet-to-be-determined award from the proceeds of the government's recovery.  DOJ (SDNY), OH

June 6, 2016

Genentech Inc. and OSI Pharmaceuticals LLC agreed to pay $67 million to resolve charges they violated federal and state False Claims Act by making misleading statements about the effectiveness of the cancer drug Tarceva.  According to the government, Genentech and OSI made misleading representations to physicians and other health care providers about the effectiveness of Tarceva when there was little evidence to show that Tarceva was effective to treat those patients unless they also (i) had never smoked or (ii) had a mutation in their epidermal growth factor receptor, which is a protein involved in the growth and spread of cancer cells.  The allegations originated in a whistleblower lawsuit filed by former Genentech employee Brian Shields under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of approximately $10 million out of the proceeds of the government’s recovery.  Whistleblower Insider GA, MA, OH

June 1, 2016

Dr. Jonathan Oppenheimer, former owner and CEO of Nashville drug testing laboratory Prost-Data, Inc. (d/b/a OURLab), OPKO Health, Inc., and OPKO Lab, have agreed to pay $9.35 million to resolve charges they violated the False Claims Act by providing illegal kickbacks in exchange for business.  According to the government, Dr. Oppenheimer and OURLab made donations toward electronic health records (EHR) systems purchased by their client physician practices that fell outside the restrictions set forth in the Anti-Kickback Statute EHR safe harbor and the Stark EHR exception.  The allegations originated in a whistleblower lawsuit filed by a former OURLab employee under the qui tam provisions of the False Claims Act.  The whistleblower will receive a whistleblower award of $1.683 million from the proceeds of the government's recovery.  DOJ (MDTE)

June 1, 2016

San-Diego-based Harper Construction Company, Inc. paid $5.4 million to resolve allegations it violated the False Claims Act by fraudulently billing the government for work on multiple projects on military bases through the use of sham small disadvantaged businesses.  The settlement involves four government contracts to construct facilities at Camp Pendleton and Camp Lejeune.  According to the government, Harper claimed it met the contract requirement that it subcontract a certain percentage of work to small disadvantaged businesses when in fact it subcontracted with sham small disadvantaged businesses.  Also, Harper allegedly required the sham small businesses to pass through all of their work to an affiliated large business, Frazier Masonry Corporation.  The allegations originated in a whistleblower lawsuit filed by Rickey Howard, a former employee of Harper subcontractor Frazier Masonry Corporation, under the qui tam provisions of the False Claims Act.  Mr. Howard will receive a whistleblower award of $1,485,000 from the proceeds of the government's recovery.  DOJ (SDCA)

May 31, 2016

Newark, New Jersey-based Saint Michael’s Medical Center Inc. agreed to pay $450,000 to resolve allegations it violated the False Claims Act by falsely billing Medicare and Medicaid for medically unnecessary cardiac procedures.  The allegations originated in a whistleblower lawsuit under the qui tam provisions of the False Claims Act.  DOJ (DNJ)

May 27, 2016

Medical device manufacturer Paradigm Spine agreed to pay $585,000 to resolve allegations it violated the False Claims Act by marketing the company’s coflex-F® device for surgical uses that were not approved by the FDA.  The settlement further resolves allegations that Paradigm caused false claims by giving false recommendations on how to code health claims for procedures involving the company’s coflex® device.  The allegations originated in a whistleblower lawsuit filed by Chris Coyle, a former Paradigm Spine sales representative, under the qui tam provisions of the False Claims Act.  Mr. Coyle will receive a whistleblower award of approximately $105,300 from the proceeds of the government's recovery.  DOJ (DMD)

DOJ Catch of the Week -- Genentech

Posted  06/10/16
By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to Genentech Inc. and OSI Pharmaceuticals LLC.  On Monday, the San Francisco and New York-based pharmaceutical companies agreed to pay $67 million to resolve charges they violated the False Claims Act by making misleading statements about the effectiveness of the drug Tarceva, which is approved to treat certain patients...

Tarceva Whistleblower Settlement Shows Government Willingness to Scrutinize Efficacy Data Even for On-Label Uses

Posted  06/8/16
By the C|C Whistleblower Lawyer Team On June 6, 2016, the Department of Justice announced that Genentech Inc. and OSI Pharmaceuticals would pay $67 million to resolve whistleblower allegations that the companies misled physicians and patients about the effectiveness of Tarceva to treat certain types of lung cancer.  The whistleblower’s complaint alleged that the companies deployed sales forces and physician...

DOJ Catch of the Week -- Prime Healthcare

Posted  05/27/16
By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to Prime Healthcare Services.  On Wednesday, the Justice Department announced its decision to intervene in a whistleblower lawsuit filed under the False Claims Act against Prime, its founder and CEO Dr. Prem Reddy, and 14 Prime hospitals in California.  The government alleges that at Dr. Reddy's direction, these...
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