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From the monthly archives: June 2012

In a case that illustrates the growing number of off-label promotion cases filed under the False Claims Act, on May 7th it was announced that Abbott Laboratories had agreed to pay $1.6 billion to settle allegations that it engaged in fraudulent marketing of its drug Depakote. The global settlement included a [...]

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At a public hearing on June 20, 2012, Mayor Michael Bloomberg of New York City gave remarks before a legislative session of the New York City Council in which he announced his support for legislation which would give New York City’s False Claims Act effect into perpetuity, as well as make some alterations [...]

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An SEC whistleblower program mandated as part of the Dodd-Frank financial regulation passed in 2010 is expected to disburse the first payments to whistleblowers in the near future. The formal whistleblower process incentivizes reporting of corporate wrongdoing by compensating those who come forward with 10% to 30% of the penalties ultimately levied against [...]

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Connecticut Attorney General George Jepsen has filed a claim under Connecticut’s False Claims Act (“FCA”) alleging that 28 individuals, dental practices, and corporations engaged in a scheme to defraud the state’s Medicaid program to the tune of $24 million. The Connecticut law is one of 10 state FCAs in [...]

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The federal government has filed a notice of intervention in a qui tam whistleblower complaint brought under the False Claims Act (“FCA”) alleging that Healthpoint Ltd., a subsidiary of DFB Pharmaceuticals Inc., fraudulently represented to the Medicare and Medicaid programs that the drug Xanaderm was approved for sale by the federal Food and [...]

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The U.S. Supreme Court has agreed to hear a challenge to the Ninth Circuit’s recent ruling in a securities fraud class action lawsuit against Amgen Inc., the world’s largest biotechnology company. In the shareholder action, investors in Amgen have alleged that the company misrepresented safety concerns surrounding two of its products, [...]

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Widespread fraud and abuse in the health care sector have led to efforts at both the national and state levels to provide more robust protections for whistleblowers who report fraudulent practices against retaliation by their employers. In the Commonwealth of Massachusetts, which has a near-universal health care system predicated upon partnerships between public [...]

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Orthofix International NV, a company that produces bone repair and other sports medicine products, agreed to pay out a $42 million settlement to resolve claims against it filed by a whistleblower under the False Claims Act (“FCA”). The settlement would also bring to an end a six-year criminal investigation by the [...]

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Two former employees of Florida-based Liberty Medical Supply, a supplier of diabetes medication and equipment and a subsidiary of Medco Health Solutions Inc. and Polymedica Corp., have filed a lawsuit against the company and several related subsidiaries under the False Claims Act (“FCA”).

The whistleblowers, both of whom held a variety [...]

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This past week, the U.S. Department of Justice announced an $18.1 million settlement with Calnet, a language services company which contracts with the Department of Defense to provide translation and linguistic services at Guantánamo Bay and other military facilities. The company is alleged to have intentionally inflated its overhead rates on all three [...]

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St. Jude Medical, a Canadian medical device manufacturer, announced on Thursday that it would pay $3.65 million as an offer of settlement to dispose of allegations that it was overcharging buyers to replace the company’s pacemakers and defibrillators that were under warranty.

The allegations were initially brought by two whistleblowers in federal district [...]

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On April 20, 2012, the highly influential United States Court of Appeals for the District of Columbia Circuit handed down its decision in United States ex rel. Schwetzer v. Océ N.V. The case concerned claims brought under the False Claims Act (“FCA”) by two whistleblowers against their former employer, Océ, a company [...]

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